If Shrinkage Is Found for $400, an Adjusting Entry Would

question 140

Multiple Choice

If shrinkage is found for $400, an adjusting entry would be made as follows:

• A)debit Inventory for $400; credit Cost of Goods Sold for $400.
• B)debit Inventory for $400; credit Sales Returns and Allowances for $400.
• C)debit Cost of Goods Sold for $400; credit Inventory for $400.
• D)debit Sales Returns and Allowances for $400; credit Inventory for $400.

Learn about the accounting for natural resources, including the concept of depletion.

Incorporate the concept of gains, losses, and the book value in the financial reporting and disposal of fixed assets.

Understand how to calculate the cost basis of assets, including both new and used machinery.

Identify and understand the factors contributing to the decline in the usefulness of fixed assets.

---

Definitions:

Mind

The mind encompasses the array of cognitive faculties by which consciousness, perception, thinking, judgement, and memory are experienced and processed.

Determinism

The idea in philosophy that every event and moral decision is fully caused by preceding factors.

Predict

To declare or indicate in advance; to forecast the occurrence of something.

Experimental Method

A research method involving the manipulation and control of variables to study causality.