Record Inventory That Is Recovered After a Loss Has Already

question 24

Multiple Choice

Record inventory that is recovered after a loss has already been recorded -

• A)in the general journal using the inventory asset and the damaged/lost inventory expense accounts
• B)in the adjustments journal using a positive quantity and the damaged/lost inventory expense account
• C)in the adjustments journal using a negative quantity and the damaged/lost inventory expense account
• D)in the general journal using the inventory asset and the damaged/lost inventory expense account

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Definitions:

Deadweight Loss

The loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved.

Consumer Surplus

The contrast between the total price consumers aim and are capable of paying for a good or service and the price they actually pay.

Tax

Mandatory financial charges imposed by a government on individuals or entities to fund public expenditures.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive, due to higher market prices.