An Entity's Physical Count of Inventories Was Higher Than the Inventory

question 49

Multiple Choice

An entity's physical count of inventories was higher than the inventory quantities per the perpetual records. This situation could be the result of the failure to record:

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

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Definitions:

Debentures

A type of debt instrument not secured by physical assets or collateral, issued by companies to raise capital.

Bonds

Financial instruments representing a loan made by an investor to a borrower, typically a corporation or governmental entity.

Liens

A legal claim or right against a property as security for a debt or loan.

Public Corporations

Entities that are owned by the government to serve the public interest, often operating in sectors like transportation, utilities, or healthcare.