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:

Litigation

The process of taking legal action or resolving disputes in court.

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Agricultural crops that are not staple commodities, often including fruits, vegetables, nuts, and ornamental plants.

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A white supremacist group founded in the aftermath of the American Civil War, known for violent tactics aimed at intimidating African Americans and other minority groups.

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Refers to the people and nations located in the eastern part of the European continent, including countries such as Poland, Hungary, and the Czech Republic.