When a company performs an actual count of goods on hand, this is called a
A) Physical Inventory
B) Inventory Shrinkage
C) Inventory Count
D) Inventory Take

Question

Quizplus · Accepted Answer

A physical inventory involves the actual counting and recording of all the goods on hand in a business. This is typically done at the end of a reporting period (such as a fiscal year) to determine the accuracy of the inventory records and to reconcile any discrepancies. Inventory shrinkage refers to the loss of inventory due to theft, damage, or other causes, while an inventory count or inventory take are less formal terms that may refer to other aspects of inventory management.

When a Company Performs an Actual Count of Goods on Hand