Quantities recorded during the physical count of inventories are greater than the quantities in the perpetual records.This could be the result of a failure to record ________.
A)sales
B)sales discounts
C)purchases
D)purchase discounts

Question

Quizplus · Accepted Answer

If purchases are not recorded, the perpetual records will not reflect the increase in inventory. As a result, the physical count may indicate a higher quantity than the perpetual records. Failure to record sales or discounts would have the opposite effect and result in a lower physical count.

Quantities Recorded During the Physical Count of Inventories Are Greater