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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Definitions:

Listen

The act of actively paying attention to sounds, which in a business context, often refers to understanding the needs or feedback of customers or clients.

Service Providers

Companies or individuals that offer services to others in exchange for compensation.

Contagious

Capable of being transmitted from one individual to another through direct or indirect contact.

Perishable

Items that have a limited lifespan and can spoil or decay, such as food products, flowers, and certain pharmaceuticals.