A physical count of inventory provides the basic data necessary to perform an item analysis of the non-current assets.

Question

Quizplus · Accepted Answer

A physical count of inventory is used to verify the quantities of current assets (inventory), not non-current assets. Non-current assets include long-term investments, property, plant, and equipment, and are not typically subject to physical counts for item analysis in the same way inventory is.

A Physical Count of Inventory Provides the Basic Data Necessary