If There Is a Difference Between the Physical Count and the Perpetual

question 13

Multiple Choice

If there is a difference between the physical count and the perpetual record, the account in which the difference is recorded is:

• A)Sales.
• B)Cost of Goods Sold.
• C)Inventory Expense.
• D)Revenue.

Grasp the concept of independent events and how they affect probability outcomes.

Identify and apply the correct approach to assigning probabilities (classical, relative frequency, or subjective).

Analyze real-life data to calculate probabilities for given events.

Evaluate different approaches to probability to determine the most appropriate for a given scenario.

---

Definitions:

IFRS

Stands for International Financial Reporting Standards, which are designed to make company accounts understandable and comparable across international boundaries.

Highly Liquid Investments

Investments that can easily and quickly be converted into cash with little loss of value.

Petty Cash Fund

A modest sum of money held in reserve for small or unplanned expenses.

Cash Replenishment

The process of refilling a petty cash fund to its designated level after it has been depleted through use.