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:

Belongingness

The human emotional need to be an accepted member of a group, feeling of connection and acceptance within a social framework.

Esteem

A term that denotes respect and admiration, typically for a person or an entity's qualities or achievements.

Self-actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Extrinsic Factors

External elements or influences that affect behavior, motivation, and outcomes, such as rewards or punishments that are not inherently related to the activity being performed.