Understanding Inventory Discrepancies

What can cause a discrepancy between book inventory and physical inventory?

a. Theft

b. Damage

c. Miscounting

d. Supplier fraud

e. All of the above

Answer:

The correct answer is e. All of the above

When there is a discrepancy between book inventory and physical inventory, it could be caused by various factors such as theft, damage, miscounting, and supplier fraud. These factors can contribute to the difference in the recorded inventory levels and the actual inventory on hand.

It is important for businesses to regularly reconcile their book inventory with physical inventory to identify and address any discrepancies that may arise. By doing so, companies can maintain accurate records and ensure efficient inventory management.