Which of the Following Statements Regarding Shrinkage Is Not Correct

question 64

Multiple Choice

Which of the following statements regarding shrinkage is not correct?

• A) Perpetual inventory systems can help managers detect shrinkage.
• B) Shrinkage is another term for inventory loss due to theft, error, or fraud.
• C) Shrinkage is detected by comparing the balance in the inventory ledger account and the results of the physical inventory count.
• D) It is easier to detect shrinkage in a periodic inventory system than in a perpetual inventory system.

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