Question

Which statement is false?a. No matter whether a periodic or perpetual inventory system is used, all companies need to determine inventory quantities at the end of each accounting period. b. Taking a physical inventory involves actually counting, weighing, or measuring each kind of inventory on hand. c. An inventory count is generally more accurate when goods are not being sold or received during the counting. d. Companies that use a perpetual inventory system must take a physical inventory to determine inventory on hand on the balance sheet date and to determine cost of goods sold for the accounting period.

Answer 1

d. Companies that use a perpetual inventory system must take a physical inventory to determine inventory on hand on the balance sheet date and to determine cost of goods sold for the accounting period.

Step-by-step explanation:

The perpetual inventory is a method by which all is recorder in the books, so it is a fairly accurate approximate of the inventory that the company actually has on hand, because of that the company has a very good description and idea of how much the goods sold in a certain period was, without the necessity of doing a physical inventory.