Which of the following statements about physical inventory is false?

The statement that physical inventory reduces the need for bookkeeping is false because physical inventory does not eliminate the need for bookkeeping; rather, it complements it. Bookkeeping is essential for tracking ongoing transactions, sales, and other changes in inventory levels. Physical inventory is a snapshot at a particular point in time and is used to verify the accuracy of bookkeeping records. High frequencies of physical counts are beneficial for identifying discrepancies, ensuring that stock levels are accurate, and supporting financial reporting. Accurate reporting and maintaining stock levels are critical functions served by physical inventory, which highlights the importance of an effective bookkeeping system alongside physical checks.