A company's unadjusted balance in Inventory will usually not agree with the actual amount of inventory on hand at year-end.

Question

Quizplus · Accepted Answer

The unadjusted balance in Inventory only reflects the amount of inventory recorded in the company's accounting books, but it does not account for any adjustments needed due to shrinkage, spoilage, or other factors that may affect the physical inventory count. Therefore, it is likely that the unadjusted balance in Inventory will not match the actual amount of inventory on hand at year-end.

A Company's Unadjusted Balance in Inventory Will Usually Not Agree