Question

Boxes or other containers holding inventory should also be opened during test counts to determine the ___________ of the inventory.

a. Classification
b. Detail tie-in
c. Existence
d. Realizable value

Answer 1

C. Existence

Explanation:

How do you test inventory existence?

For inventory that is in the company's possession, the best way to test the existence assertion is to observe the company's physical inventory observation.