If the Perpetual Inventory Master Files Show Lower Quantities of Inventory

question 63

Multiple Choice

If the perpetual inventory master files show lower quantities of inventory than the physical count, an explanation of the difference might be unrecorded

• A) sales.
• B) sales discounts.
• C) purchases.
• D) purchase discounts.

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Definitions:

Trial Balance

A financial record-keeping sheet that consolidates the balances of various ledgers into uniform debit and credit column totals.

Journalizing

The process of recording transactions in a journal or ledger in the field of accounting.

Posting Process

In accounting, this is the step where transactions are transferred from the journal to the respective accounts in the ledger, updating the account balances.

Trial Balance

A worksheet in bookkeeping that assembles the balances from each ledger into corresponding totals in debit and credit categories.