If a Physical Count Is Not Completed and Shrinkage Has

question 12

True/False

If a physical count is not completed and shrinkage has occured, beginning inventory will be overstated in the next period.

---

Definitions:

Trial Balance

An accounting table that consolidates all ledger balances into equal totals in the debit and credit columns.

Journal Entry

A recording of financial transactions in the accounting records, detailing the accounts affected, amounts, and date.

Chart of Accounts

An organized list of all ledger account titles and numbers used by a company, detailing all transactions' recording places.

General Ledger

A comprehensive record of all financial transactions of a company, systematically organized by accounts.