A Retailer's Physical Count of Inventory Was Higher Than That

question 38

Multiple Choice

A retailer's physical count of inventory was higher than that shown by the perpetual records. Which of the following could explain the difference?

• A)Inventory items had been counted but the tags placed on the items had not been taken off and added to the inventory accumulation sheets.
• B)Credit memos for several items returned by customers had not been recorded.
• C)No journal entry had been made on the retailer's books for several items returned to its suppliers.
• D)An item purchased FOB shipping point had not arrived at the date of the inventory count and had not been reflected in the perpetual records.

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Definitions:

Draining

The act or process of depleting or being depleted of resources or energy.

Inert Substance

A substance that does not undergo chemical reactions under a set of given conditions, often used as a control in experiments.

Placebo

A harmless substance or treatment that has no therapeutic effect, used as a control in testing new drugs.

Relaxant

A substance or drug that reduces tension or strain in muscles, often used to alleviate muscle spasms or to induce relaxation.