After Performing a Physical Count of Inventory at the End

question 131

Multiple Choice

After performing a physical count of inventory at the end of the accounting period,it was discovered that the amount of inventory on hand was less than the accounting records reported.The entry to record this inventory shrinkage includes:

• A)credit to Cost of Goods Sold.
• B)debit to Inventory.
• C)credit to Purchase Discounts.
• D)credit to Inventory.

---

Definitions:

Cognition

Cognition encompasses mental processes related to knowledge, understanding, problem-solving, and decision-making.

Acquiring Knowledge

The process of learning or gaining information, skills, or understanding through experience, education, or instruction.

Mental Processes

Internal operations of the mind, including thinking, perceiving, remembering, and decision-making, that underlie behaviors.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, typically resulting in a final choice.