An actual count of the goods owned by the company. The actual counts are then compared to
the quantities reported on the detailed inventory records. If a difference exists, the quantity
shown on the inventory record should be changed to the physical count.
Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com. Read more about the author.