Final answer:
A physical inventory is not only required at year-end if the company has a periodic inventory system.
Step-by-step explanation:
A physical inventory is only required at year-end if the company has a periodic inventory system. False.
In a periodic inventory system, a physical inventory is typically conducted at the end of the accounting period to determine the ending inventory and cost of goods sold. However, in a perpetual inventory system, which is more commonly used in modern businesses, a physical inventory may not be required at year-end since the system continuously tracks inventory levels.
For example, in a perpetual inventory system, every time a sale is made or inventory is received, the system automatically updates the inventory records. Therefore, a physical count of inventory may only be necessary for other purposes, such as verifying the accuracy of the records or identifying any discrepancies.