Hicksvilles Department Store uses a perpetual inventory syst

Hicksville\'s Department Store uses a perpetual inventory system. At year-end, the balance in the Inventory control account is $1,200,000. Assuming that the inventory records have been maintained properly, a year-end physical inventory Select one: 0 a. Is unnecessary. O b. Is needed to establish the ending inventory, as the $1,200,000 balance in the Inventory control account represents the beginning inventory O c. Probably will indicate more than $1,200,000 in merchandise on hand. O d. Probably will indicate less than $1,200,000 in merchandise on hand.

Solution

Answer is

D. Probably will indicate less than $1,200,000 in merchandise on hand.

Under Perpetual Invetory system inventory records are updated hence there is no chance of Excess stock in hand. but there are possibility of shortage in stock by theft.