Question

For companies that use a perpetual inventory system, all of the following are purposes for taking a physical inventory except:

A. Verifying the accuracy of the perpetual records
B. Checking for theft or fraud
C. Adjusting inventory to the current market value
D. Identifying obsolete inventory

Answer 1

For companies that use a perpetual inventory system, the purpose of taking a physical inventory is to verify the accuracy of the perpetual records, check for theft or fraud, and identify obsolete inventory.

Step-by-step explanation:

The answer to this question is C. Adjusting inventory to the current market value.

A perpetual inventory system is one in which companies continuously track their inventory using computerized systems. The purpose of taking a physical inventory in this system is to verify the accuracy of the perpetual records, check for theft or fraud, and identify obsolete inventory. Adjusting the inventory to the current market value is not a purpose of taking a physical inventory.