One Reason a Company Using a Perpetual Inventory System Must

question 155

True/False

One reason a company using a perpetual inventory system must make a physical count of goods is to determine the amount of inventory on hand as of the statement of financial position date.

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Definitions:

Stability

The state of being steady, consistent, and free from significant change or fluctuation.

Low Uncertainty Avoidance

A cultural perspective that tolerates ambiguity and uncertainty, and is more accepting of unstructured situations.

Uncertainty Avoidance

A cultural dimension that describes the degree to which people in a society attempt to cope with anxiety by minimizing uncertainty.

The United Kingdom

A sovereign country located off the northwestern coast of mainland Europe, comprising England, Scotland, Wales, and Northern Ireland.