Physical Counts of Inventory

question 7

Multiple Choice

Physical counts of inventory

• A) Are not necessary under the perpetual system
• B) Are necessary to adjust for shrinkage
• C) Should be taken at least once a month
• D) Are necessary to adjust for shrinkage and should be taken at least once a month
• E) Are not necessary under the perpetual system and should be taken at least once a month

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Definitions:

Oil Company

A business entity engaged in the exploration, extraction, refining, transportation, and sale of petroleum products.

Pump Oil

The process of extracting crude oil from the ground using mechanical devices known as pumps, typically found in oil wells.

Future Profits

Expected earnings or gains in the coming periods, often projected based on current trends, market conditions, and business plans.

Extraction Quantity

The amount of a natural resource or raw material that is removed from the earth, typically for industrial or commercial use.