Which statement is false? A)Taking a physical inventory involves actually counting, weighing, or measuring each kind of inventory on hand. B)No matter whether a periodic or perpetual inventory system is used, all companies need to determine inventory quantities at the end of each accounting period. C)An inventory count is generally more accurate when goods are not being sold or received during the counting. D)Companies that use a perpetual inventory system must take a physical inventory to determine inventory on hand on the balance sheet date and to determine cost of goods sold for the accounting period.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, inventory records are continuously updated, so a physical inventory is not required to determine inventory on hand or cost of goods sold, although it may be done for accuracy verification.

Which Statement Is false