After a physical inventory count, which action updates QuickBooks Online to reflect the actual on-hand quantity?

After a physical inventory count, which action updates QuickBooks Online to reflect the actual on-hand quantity?

• A. Prepare a journal entry to reflect the difference
• B. Create a new stock item
• C. Update the unit cost in the item list
• D. Adjust quantities on hand

Answer: (D)

After a physical inventory count, you need to make QuickBooks Online reflect the actual stock on hand. The way to do this is to adjust quantities on hand. This function updates the on-hand quantity for the selected items and also adjusts the inventory value accordingly, so your inventory asset and COGS (cost of goods sold) accounts stay accurate. The other options don’t update the actual quantity: a journal entry changes accounts but isn’t the proper way to adjust item quantities; creating a new stock item adds a catalog entry but doesn’t fix the count; updating the unit cost changes price or cost but not the quantity on hand.

After a physical inventory count, you need to make QuickBooks Online reflect the actual stock on hand. The way to do this is to adjust quantities on hand. This function updates the on-hand quantity for the selected items and also adjusts the inventory value accordingly, so your inventory asset and COGS (cost of goods sold) accounts stay accurate. The other options don’t update the actual quantity: a journal entry changes accounts but isn’t the proper way to adjust item quantities; creating a new stock item adds a catalog entry but doesn’t fix the count; updating the unit cost changes price or cost but not the quantity on hand.