When Perpetual Inventory Concepts Are Utilized, a Physical Inventory Count

question 99

True/False

When perpetual inventory concepts are utilized, a physical inventory count to determine the quantity of inventory on hand is not required.

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Definitions:

Return on Equity Ratio

A financial ratio that measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Financial Statements

Formal records of the financial activities and condition of a business, entity, or individual, including balance sheet, income statement, and cash flow statement.

ROA

Return on Assets, a financial ratio that indicates how profitable a company is relative to its total assets, measuring how efficient management is in using assets to generate earnings.

Debt/Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.