A Physical Stocktake Is Carried Out

question 1

Multiple Choice

A physical stocktake is carried out:

• A) only under the periodic inventory system.
• B) only under the perpetual inventory system.
• C) under both the periodic and perpetual systems.
• D) under neither the periodic nor the perpetual systems.

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Definitions:

Interim Statements

Financial statements prepared for a period shorter than a financial year, typically quarterly or semi-annually, to provide a more immediate financial status of the company.

Insurance

A financial product that provides protection against financial losses from specified risks, such as accidents, theft, or natural disasters.

Fiscal Year

A one-year period that companies and governments use for accounting purposes and preparing financial statements, which may or may not align with the calendar year.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories.