Question

001 HW G. Help Save & Exit Check in ANNI Required information Sales Discounts the discount period. Accounts Recelvable Sales - Granting sales returns or allowances. Sales Retums and Allowances ...... Cash or Accounts Receivable ... Merchandise Inventory ............... Cost of Goods Sold # Knowledge Check 01 If a perpetual inventory system is in use O a physical inventory count is not required because the Inventory account is updated for each purchase and sale. O a physical inventory count is not required because the Inventory account is updated every time a transaction or event occurs. о a physical inventory count should be taken at least annually. O a physical inventory count is required because the Inventory account is not updated when inventory is purchased or sold. < Prey 6 of 32 Next > rch о a

Answer 1

C. a physical inventory count should be taken atleast annually.

Even under perpetual inventory system though inventory accounts are updated with every transaction, it is preferrable to take physical inventory count at least annually.

Any differences arising out of physical count can be dealt with appropriately.

option A and B are incorrect since physical inventory count is required.

Option D is incorrect since inventory account is updated after every purchase or sale.