Actually counting the goods on hand at the end of the accounting period and determining the cost of these goods by reviewing the accounting records is called
A) the cost of goods sold.
B) the physical inventory.
C) freight-in.
D) accumulated depreciation.

Question

Quizplus · Accepted Answer

The process of counting the goods on hand and determining their cost is known as physical inventory. Although the cost of goods sold is related to inventory, it is a separate concept that refers to the cost of the goods that were sold during the accounting period. Freight-in refers to the cost of transporting goods from the supplier to the buyer and is not directly related to inventory valuation. Accumulated depreciation is a concept related to the valuation of tangible assets such as property, plant, and equipment.

Actually Counting the Goods on Hand at the End of the Accounting