In a Perpetual Inventory System,the Physical Count of Inventory ________

question 46

Multiple Choice

In a perpetual inventory system,the physical count of inventory ________,

• A)serves as a check of the perpetual records
• B)captures transactions that are not recorded by the electronic system
• C)establishes the correct amount of ending inventory for the financial statements
• D)All statements are correct.

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Definitions:

Operational Performance

Evaluation of an organization's effectiveness in producing its goods or services, considering efficiency and productivity.

EBIT

EBIT, an indicator of corporate earnings, captures the profit of a company by including all costs except for those related to interest and taxes.

Income Taxes

Taxes imposed by the government on income generated by businesses and individuals within their jurisdiction.

EBIT

Earnings Before Interest and Taxes - a measure of a firm's profitability that excludes interest and income tax expenses.