Question

True /False : Generally, a physical count of inventory is performed annually in both a perpetual inventory system and a periodic inventory system.

Answer 1

True, both perpetual and periodic inventory systems commonly include an annual physical inventory count to ensure accurate tracking and accounting.

Step-by-step explanation:

The statement is generally true: a physical count of inventory is typically conducted annually in both a perpetual inventory system and a periodic inventory system. Such an annual inventory count is part of maintaining accurate records and accounting practices. In a perpetual inventory system, continuous tracking of inventory levels is done through point-of-sale and other inventory management systems. Meanwhile, in a periodic inventory system, inventory levels are updated at set intervals, typically at the end of an accounting period through a physical count.