When Using a Perpetual Inventory System, the Adjusting Entry Required

question 195

Multiple Choice

When using a perpetual inventory system, the adjusting entry required when merchandise inventory records do NOT agree with the physical count

• A) has an effect on Cost of Goods Sold.
• B) has no effect on Cost of Goods Sold.
• C) requires reporting a loss when actual is higher than records.
• D) requires reporting a gain when actual is lower than records.

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Definitions:

Altitude

The height of an object or point in relation to sea level or ground level, often affecting climate, weather, and physical exertion levels.

Hydration

The process of providing adequate water to the body to maintain health and proper functioning of all systems.

Upper Back

The region of the back that extends from the base of the neck to the bottom of the ribcage, encompassing muscles and vertebrae.

Quadriceps

A group of four muscles located at the front of the thigh, responsible for extending the knee and flexing the thigh at the hip.