Which of the following control activities would most likely be used to maintain accurate perpetual inventory records?
A)Independent storeroom count of goods received.
B)Periodic independent reconciliation of control and subsidiary records.
C)Periodic independent comparison of records with goods on hands.
D)Independent matching of purchase orders, receiving reports, and vendors' invoices.

Question

Quizplus · Accepted Answer

Periodic independent comparison of records with goods on hands would help ensure that perpetual inventory records are accurate by identifying any discrepancies between the inventory records and the actual goods on hand. This control activity involves physically counting the inventory and comparing it to the recorded quantity, which helps to identify any errors or inconsistencies that need to be corrected. The other options listed may also be important control activities for inventory management, but they are not as directly related to maintaining accurate perpetual inventory records.

Which of the Following Control Activities Would Most Likely Be