A client's physical count of inventories was higher than the inventory quantities per the perpetual records.This situation could be the result of the failure to record:
A)Sales.
B)Sales discounts.
C)Purchases.
D)Purchase returns.

Question

Quizplus · Accepted Answer

If the physical count of inventories is higher than the inventory quantities per the perpetual records, it indicates that some purchases made during the period were not recorded in the perpetual records. Sales, sales discounts, and purchase returns would not affect the inventory quantity on hand as they are transactions that decrease the quantity of inventory. Therefore, the failure to record purchases is the most likely reason for the discrepancy.

A Client's Physical Count of Inventories Was Higher Than the Inventory