Jenna Was Convinced That Her Roommate Was Stealing from Her

question 174

Multiple Choice

Jenna was convinced that her roommate was stealing from her.As her distrust and anger grew, their relationship turned cold and distant.What advice would you give Jenna?

• A)Usually your "gut instinct" about a situation is correct, so move out and find a more trustworthy roommate.
• B)Usually your "gut instinct" is wrong and memories where you put your money are inaccurate, so you should trust your roommate and maintain the friendship.
• C)Confront your roommate about your suspicions and discuss the situation.
• D)Hide your money better since your roommate probably had a good reason for needing the money.

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Definitions:

Periodic Inventory System

An inventory system in which the inventory count and cost of goods sold calculation are performed at specific intervals, typically at the end of an accounting period.

FIFO

FIFO, which stands for "first in, first out," is an inventory valuation method where the first items placed in inventory are the first ones sold. This approach aims to mirror the actual flow of goods.

Ending Inventory Cost

The total value of all the goods a company has in stock at the end of a financial period, calculated using one of several accounting methods.

Physical Inventory

A process of counting the actual inventory on hand at a particular point in time.