When a Perpetual Inventory System Is Used, Which of the Following

question 185

Multiple Choice

When a perpetual inventory system is used, which of the following is a purpose of taking a physical inventory?

• A)To check the accuracy of the perpetual inventory records
• B)To determine cost of goods sold for the accounting period
• C)To compute inventory ratios
• D)All are a purpose of taking a physical inventory when a perpetual inventory system is used.

---

Definitions:

Content Effects

The impact that the subject matter or content has on the processing, understanding, and memory of information, which can vary depending on the relevance or familiarity of the content.

Confirmation Bias

A tendency to seek only information consistent with one’s hypothesis.

Information

Data or knowledge communicated or received concerning a particular fact, subject, or event.

Formal Reasoning

A cognitive process involving the use of logical operations or established principles to arrive at conclusions, often associated with higher-order thinking and problem-solving.