Under a Perpetual Inventory System, the Adjusting Entry to Account

question 78

Multiple Choice

Under a perpetual inventory system, the adjusting entry to account for inventory shrinkage would include a:

• A)credit to Miscellaneous Expense.
• B)credit to Cost of Goods Sold.
• C)credit to Inventory.
• D)debit to Miscellaneous Expense.

---

Definitions:

Temporal Relationship

The relational concept that denotes the timing and sequence of events or variables as they occur over time.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any conditioning.

Successive Approximations

A series of gradual steps, each of which is more similar to the final desired response.