Which of these is a known component of cash and inventory controls?

Physical inventory counts are a fundamental component of cash and inventory controls because they provide an accurate assessment of the stock on hand. Conducting regular counts helps businesses verify that their recorded inventory matches the actual physical stock, thus ensuring accuracy in financial reporting and aiding in the prevention of discrepancies due to theft, loss, or damage. This process supports inventory management by helping identify slow-moving items, enabling organizations to make informed purchasing and stocking decisions, ultimately impacting cash flow management.

While other options may support broader financial oversight and strategic planning, they do not serve the direct function of verifying inventory levels and ensuring the integrity of inventory records, which is crucial for effective inventory and cash management. Monitoring sales trends can inform purchasing decisions but does not involve direct physical verification. Daily financial reviews, while important for overall financial health, focus more on reviewing financial transactions and cash flow rather than inventory specifics. Seasonal budgeting relates to financial planning based on expected revenues and expenses over time, which is also separate from the actual counting and verification of physical stock.