EFlynn Company Uses a Perpetual Inventory System and Reported $500,000

question 77

Multiple Choice

E.Flynn Company uses a perpetual inventory system and reported $500,000 of inventory at the beginning of the month based on a physical count of inventory. During the month, the company bought $45,000 of inventory and sold inventory that had cost $30,000. At the end of the month, the physical count of inventory shows $510,000 on hand. How much shrinkage occurred during the month?

• A) $35,000
• B) $25,000
• C) $5,000
• D) $10,000

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Definitions:

Praise and Recognition

The act of giving positive feedback or acknowledgment to individuals or teams for their accomplishments and contributions.

ERG Theory

A theory of motivation created by Clayton Alderfer, which organizes human needs into three distinct groups: Existence, Relatedness, and Growth.

Psychological Growth

The development of an individual's mental and emotional capacities throughout their life.

Total Revenue

The overall amount of money generated by a business or organization from its activities, without deducting any expenses.