A physical inventory is usually taken
A) at the beginning of the fiscal year.
B) at the end of the busy season.
C) at the end of the fiscal year.
D) when the perpetual inventory system,but not the periodic inventory system,is being used.

Question

Quizplus · Accepted Answer

A physical inventory is usually taken at the end of the fiscal year to ensure accurate accounting records and to prepare financial statements. This helps to determine the value of the inventory on hand, which is an important component of calculating cost of goods sold and gross profit.

A Physical Inventory Is Usually Taken