Question

A physical inventory is only required at year-end if the company has a periodic inventory system.

True
False

Answer 1

A physical inventory is only required at year-end if the company has a periodic inventory system. This statement is False.

Step-by-step explanation:

A physical inventory is only required at year-end if the company has a periodic inventory system.

This statement is False.

In a periodic inventory system, the physical inventory count is performed at the end of each accounting period, such as month-end or year-end. This count is necessary to determine the correct ending inventory balance and to calculate the cost of goods sold.