Physical Counts of Inventory

question 59

Multiple Choice

Physical counts of inventory:

• A) Are not necessary under the perpetual system.
• B) Are necessary to adjust the Inventory account to the actual inventory available.
• C) Must be taken at least once a month.
• D) Requires the use of hand-held portable computers.
• E) Are not necessary under the cost-to benefit constraint.

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Definitions:

Unsecured Non-priority Liabilities

Debts that are not backed by collateral and do not have priority status in case of the debtor's bankruptcy.

Liquidated

The process of converting assets into cash or using them to discharge liabilities, often occurring during the winding up of a business.

Statement Of Financial Affairs

A comprehensive document that outlines an individual's or entity's financial transactions and position, often used in bankruptcy proceedings.

Chapter 7 Liquidation

A process under the U.S. Bankruptcy Code where a debtor's assets are sold off to pay creditors, and the debtor's remaining debts are discharged.