Mineral Makers (MM) Company Keeps Its Inventory Records Using a Perpetual

question 25

Multiple Choice

Mineral Makers (MM) Company keeps its inventory records using a perpetual system.At December 31, 2015, the unadjusted balance in the inventory account is $64,000.Through a physical count on December 31, 2015, MM determines that its actual merchandise inventory at year-end is $62,500.Which of the following is true regarding the statement of financial position and the income statement of MM at December 31, 2015?

• A)Inventory is increased and cost of goods sold is decreased by $1,500.
• B)Inventory is decreased and cost of goods sold is increased by $1,500.
• C)Inventory is increased and cost of goods sold is increased by $1,500.
• D)Inventory is decreased and cost of goods sold is decreased by $1,500.

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Definitions:

Visible Wavelengths

The portion of the electromagnetic spectrum that is visible to the human eye, ranging approximately from 380 to 750 nanometers.

Experiential Learning

A learning process through which students develop knowledge, skills, and values from direct experiences outside a traditional academic setting.

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A branch of mathematics dealing with the likelihood of occurrence of different events.

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The process of preparing and organizing data for further analysis or processing, often involving cleansing, transformation, and storage steps in a dedicated area or platform.