Under a Perpetual Inventory System,is It Necessary to Take a Physical

question 103

Essay

Under a perpetual inventory system,is it necessary to take a physical inventory at the end of the period? Why or why not?

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Definitions:

Promissory Note

A financial document in which one party promises to pay another party a definite sum of money at a specified future date or on demand.

Missing Value

A data point that is not recorded or is absent in a data set or analysis.

Simple Interest

Interest calculated on the principal amount of a loan or deposit without compounding.

Daily Closing Balance

The total amount in an account at the end of each day, taking into account all transactions and activities of that day.