The physical count of inventory may be less than the accounting records due to the following:
A) Receiving Errors
B) Shoplifting
C) Accounting Errors
D) All of the above

Question

Quizplus · Accepted Answer

All of the given options can cause discrepancies between the physical inventory count and the accounting records. Receiving errors can result in items not being recorded as received while shoplifting can lead to items being physically lost but not accounted for in the records. Accounting errors such as incorrect data entry or inaccurate calculations can also cause discrepancies.

The Physical Count of Inventory May Be Less Than the Accounting