On December 31,2014,you Count 300 Tie Clips in Inventory

question 183

Multiple Choice

On December 31,2014,you count 300 tie clips in inventory.During the next quarter,you carefully record the effect of each purchase and sale transaction on inventory.You buy 128 tie clips during the next quarter.On March 31,2015,you count 288 tie clips in inventory.Which of the following is not correct?

• A) Ending inventory on March 31, 2015 should be 288 tie clips.
• B) Your company uses the perpetual inventory method.
• C) Your company's records would show that 140 tie clips were sold during the quarter.
• D) The amount of shrinkage cannot be determined with this type of inventory system.

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Definitions:

Spicules

Small, spike-like structures found in various organisms, such as sponges and some animals, serving as structural supports or defense mechanisms.

Invertebrate Animals

Animals lacking a vertebral column, including species such as insects, mollusks, and crustaceans.

Protistan Ancestors

Refers to the early eukaryotic organisms from which modern protists, and indirectly all eukaryotic life, are believed to have descended.

Cnidarians

A phylum of aquatic animals that includes jellyfish, corals, and sea anemones, characterized by a simple body structure with a single opening and a body wall made of two layers of cells.