Question: Which statement is false? No matter whether a periodic or perpetual inventory system is used, all companies need to determine inventory quantities at the end

Which statement is false?

No matter whether a periodic or perpetual inventory system is used, all companies need to determine inventory quantities at the end of each accounting period.An inventory count is generally more accurate when goods are not being sold or received during the counting.Taking a physical inventory involves actually counting, weighing, or measuring each kind of inventory on hand.Companies that use a perpetual inventory system must take a physical inventory to determine inventory on hand on the balance sheet date and to determine cost of goods sold for the accounting period.

Step by Step Solution

★★★★★

3.43 Rating (153 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

OPTION Companies that use a perpetual inventory system must take a physical inventory to de... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 8%...

An investment will pay $15,000 at the end of each year for eight years and a one-time payment of $120,000 at the end of the eighth year. Determine the present value of this investment using a 7...

At the end of each year, Tom invests $2,000 in a retirement account. Joan also invests $2,000 in a retirement account but makes her deposits at the beginning of each year. They both earn 9 percent on...

Will the dollar amount assigned to inventory differ when a company uses the weighted average cost method depending on whether a periodic or perpetual inventory system is used? Explain your answer.

The accountant of Scampion plc, a retailing company listed on the London Stock Exchange, has produced the following draft financial statements for the company for the year to 31 May 2002. You...

In December 1995, the flamboyant entrepreneur Michael "Mickey" Monus, formerly president and chief operating officer (COO) of the deep-discount retail chain PharMor, Inc., was sentenced to 19 years...

Presented below are excerpts from Note 1 to Starbucks' September 30, 2012, consolidated financial statements in which Starbucks describes accounting policy for long-lived assets. a. Leasehold...

For the following independent situations, assume that you are the audit partner on the engagement: 1. During your audit of Raceway.com, Inc., you conclude that there is a possibility that inventory...

Multiple Choice Questions 1. At what amount is the inventory reported on Metallic Wonders' December 31, 2014, balance sheet? a. $ 905, 000 b. $ 910, 000 c. $1, 000, 000 d. $1, 250, 000 2. At what...

Often an important aspect of a CPA's examination of financial statements is his observation of the taking of the physical inventory. Required: a. What are the general objectives or purposes of the...

Probability analysis can be a useful decision-making tool. What would be a real-life example of how this type of analysis was used by an organization in their decision-making process.

Luanne is an actuary who assesses data to take into account whether the data has been previously checked and verified. Which one of the following statements is correct? Available answer options...

1.Recommend two knowledge, skills, abilities, or other characteristics (KSAOs) to add to the dog trainer job description that align with the shelter's goals. 2.Explain how the shelter taking steps to...

Part I - Magnetic Fields 1) Background and Theory Part I: A magnetic field exerts a force that could be attractive or repulsive on another moving/stable magnet(s) depending on the polarities of both...

ANSWER WITH SOLUTION: 1.The statement of financial position of A, B, C partnership as of December 31, 2020 is presented below:

Question 1 The Braveheart Corporation uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: cutting and painting. The Cutting Department...

Non-financial measures are more likely to be understood and controlled by human resource managers lower level managers. production managers. top level managers

Differentiate the following terms/concepts: a. Personality types and money attitudes b. Planners and avoiders c. Moderating and adapting to biases d. "Perfectible judges" and "incorrigible judges"

In Exercise 16, we saw the following situation: Harada Construction has just bid on a major commercial project. The bid was based on a normal distribution representing Haradas estimates of possible...

Describe the differences and similarities in the data sets represented by the two box plots: . 30 60 90 . 30 60 90

The situation described in Exercise 27 featured the weekly deliveries of two suppliers. Deliveries from supplier A are late 7% of the time. Deliveries from supplier B are late 3% of the time. Two...

An Internet retailer stocks a popular electronic toy at a central warehouse that supplies the eastern United States. Every week the retailer makes a decision about how many units of the toy to stock....

The average number of acres burned by forest and range fires in a large Wyoming county is 4,300 acres per year, with a standard deviation of 750 acres. The distribution of the number of acres burned...

19. How does L-dopa relieve the symptoms of Parkinsons disease?