The Term Used When the Physical Inventory Account Doesn't Match

question 85

Multiple Choice

The term used when the physical inventory account doesn't match the Inventory account balance at the end of the period is

• A) Inventory Degradation.
• B) Inventory Theft.
• C) Inventory Shrinkage
• D) Inventory Management.

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Definitions:

Operating Expenses

Recurring expenses related to the central operations of a business, such as rent, utilities, and payroll, excluding costs of goods sold.

Earnings Per Share

A measure of a company's profitability, calculated as the net income divided by the number of outstanding shares of common stock.

Common Stockholders

Individuals or entities that own shares of common stock in a corporation, giving them rights to dividends and voting in shareholder meetings.

Net Income

Net earnings of a company, calculated by subtracting all costs, including taxes and expenses, from its overall revenue.