alleryPeriodic inventory taking requires:
AClosure of business briefly
BContinuous ledger entries
CNo physical verification
DBank charges accrual
Answer & Solution
Correct answer: A. Closure of business briefly
1. Periodic count requires a snapshot of physical stock at a specific point.
2. Operations are typically halted briefly so movement does not distort the count.
3. Perpetual system avoids closures.
_Source: ICAI BoS Foundation Paper 1, Ch 4 "Inventories", §4.1 limitations (ii)_
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