Which of the Following Circumstances Is Not a Reason to Compute

Multiple Choice

Which of the following circumstances is not a reason to compute an estimate of the amount of inventory?

A) To complete the company's annual income tax return.
B) To evaluate the accuracy of a physical count of goods.
C) To prepare monthly or quarterly financial statements without incurring the expense of taking a physical inventory.
D) To support an insurance claim for a loss due to theft of inventory.