Most Companies Do Not Take a Physical Count of Inventory

question 146

True/False

Most companies do not take a physical count of inventory each year, but rather rely on inventory records to determine the inventory value.

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Definitions:

Income Tax Expense

The amount of expense associated with income taxes due to federal, state, and/or local authorities for a given period.

Corporation Income Statement

A financial statement that outlines the revenues, expenses, and profits or losses of a corporation over a specific period of time.

Cash Dividend Liability

An obligation for a corporation to pay shareholders a declared dividend in cash.

Date of Record

The specific date set by a corporation upon which the company determines the shareholders eligible to receive a dividend or distribution.