To accurately determine inventory quantities, a company must
A)use the perpetual inventory system.
B)employ an independent company to conduct inventory counts.
C)rely on the warehouse records.
D)take a physical inventory.

Question

Quizplus · Accepted Answer

Taking a physical inventory is essential for accurately determining inventory quantities because it involves actually counting the items in stock, which helps verify the accuracy of inventory records and adjust for any discrepancies.

To Accurately Determine Inventory Quantities, a Company Must