If a Difference Is Found Between the Physical Count and the Amount

question 61

Multiple Choice

If a difference is found between the physical count and the amount in the perpetual inventory records, an adjusting entry is made to which of the following accounts?

• A) Inventory Short and Over
• B) Purchases
• C) Accounts Payable
• D) Accounts Receivable

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Definitions:

Population Proportion

The ratio of members in a population that have a particular attribute, often estimated from sample data.

Chi-squared Test

A statistical test used to determine if there is a significant difference between observed frequencies and expected frequencies in categorical datasets.

Chi-squared Distribution

A statistical distribution that is used primarily in hypothesis testing and is derived from the sum of squared standard normal deviates.

Proportion

A statistical measure that indicates the fraction of the total number of items in a certain category or characteristic.