After Performing a Physical Count of Inventory at the End

question 131

Multiple Choice

After performing a physical count of inventory at the end of the accounting period,it was discovered that the amount of inventory on hand was less than the accounting records reported.The entry to record this inventory shrinkage includes:

• A)credit to Cost of Goods Sold.
• B)debit to Inventory.
• C)credit to Purchase Discounts.
• D)credit to Inventory.

---

Definitions:

Memorization

The process of committing information to memory for recall and recognition at a later time.

Puberty

The developmental stage during which children's bodies begin to develop and change into adult bodies, capable of sexual reproduction, marked by hormonal changes and physical growth.

Prepubescent

Describes a phase in human development immediately preceding puberty, during which sexual features are not yet developed.

Lower-Than-Normal IQ

A measure of cognitive ability that is significantly below the average score for the population.