Day: September 20, 2026

For the following statement concerning perpetual inventory counts, select whether it is true, false, it depends on the size of the business, or it should be referred to a more senior auditor for comment.

• All inventory lines must be counted at least once per month.

Select ONE answer:

1. Consult a senior colleague
2. Depends on the size of the business
3. False
4. True

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – All inventory lines must be counted at least once per year, not once per month.
4. Not correct

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