A physical stocktake is carried out:

Question

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A physical stocktake involves physically counting the inventory on hand at a specific point in time. This is necessary under both the periodic and perpetual inventory systems to ensure the accuracy of the inventory records. In the periodic inventory system, the physical count is used to calculate the ending inventory and cost of goods sold for the period. In the perpetual inventory system, the physical count is used to verify the accuracy of the inventory records and make any necessary adjustments.

A Physical Stocktake Is Carried Out