The primary reason a physical inventory is taken is to:
A)Adjust the perpetual inventory record for unrecorded shrinkage losses.
B)Ensure the periodic inventory record is valued correctly.
C)Both ensure the periodic inventory record is being stored securely and that it is valued correctly.
D)Ensure the perpetual inventory record is being stored in a secure manner.

Question

Quizplus · Accepted Answer

The primary reason for taking a physical inventory is to identify any unrecorded shrinkage losses, which can then be adjusted in the perpetual inventory record to ensure accuracy. The other options given are secondary reasons for taking a physical inventory.

The Primary Reason a Physical Inventory Is Taken Is To