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

---

Definitions:

Primacy Effect

The tendency to remember information at the beginning of a list better than information in the middle or end.

Perception

The cognitive process of interpreting and organizing sensory information to understand the environment.

Consensus

General agreement among a group of people or the general opinion of a group.

Distinctiveness

Refers to how much an object or person stands out as compared to others in the same category or environment.