When is a physical inventory usually taken? When goods are not being sold or received. When a company has its greatest amount of

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When is a physical inventory usually taken? When goods are not being sold or received. When a company has its greatest amount of

inventory and when goods are not being sold or received. When the company has its greatest amount of inventory. At the end of the company’s fiscal year.

Social Studies

1 answer:

Lelechka [254] · Answer 1 · 2022-09-13T11:53:06+03:00

Answer:

A physical inventory is usually taken when goods are not being sold or received and at the end of the company’s fiscal year.

Explanation:

Physical inventory is a procedure which represents a physical count of the entire inventory of a company. It is usually performed once a year, closer to the end of the year. Inventory is performed to provide accurate accounting data and find differences between what is currently in the company physical stock and what is reflected in the accounting system. Also, the physical inventory is usually done when all inventory movements are stopped (when goods are not being sold or received) in order to ensure excellent accuracy.