to ensure the accuracy of inventory accounted for using a perpetual system, physical counts ______. (check all that apply.)

Systems with perpetual inventories demand more thorough inventory data. Since the cost of goods sold accounts and the merchandise inventory must be updated often under perpetual inventory systems, more thorough inventory records are needed. Companies that use a perpetual system do a physical inventory at year's end to verify the correctness of their records and to calculate the amount of inventory lost as a result of wastage of raw materials, shoplifting, or staff theft.

Every time a firm makes a sale or buys new inventory, the perpetual inventory system's software logs the changes into a sales revenue account. The accounting records will display accurate balances in the accounts affected by the sales as a result of this procedure of registering sales.

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The given question is incomplete. The complete question is:

To ensure the accuracy of inventory accounted for using a perpetual system, physical counts ______. (Check all that apply.)

a. detect booking errors

b. are not needed when a perpetual system is used

c. detect theft

d. detect shrinkage