Why Is a Physical Count of Supplies Necessary at the End

question 90

Essay

Why is a physical count of supplies necessary at the end of the accounting period?

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Definitions:

Acquisition Fair Value

The price that would be paid to acquire an asset or the amount received to assume a liability during a business combination.

Business Combination

The coming together of separate entities or businesses into one reporting entity through a variety of transactions such as mergers or acquisitions.

Equity Securities

Equity securities are financial instruments that signify ownership in a company or an entity, and represent a claim on part of its assets and earnings.

Pre-2009 Business Combination

Refers to business mergers or acquisitions that occurred before the implementation of the revised accounting standards in 2009.