The Physical Count of Inventory of a Retailer Was Higher

question 65

Multiple Choice

The physical count of inventory of a retailer was higher than shown in its perpetual records. Which of the following could explain the difference?

• A)Inventory items had been counted but tags placed on the items had not been taken off the items and added to the inventory accumulation sheets.
• B)Credit memos for several items returned by customers had not been prepared.
• 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:

Context Effects

How environmental elements impact an individual's response to a stimulus.

Perceptual Adaptation

The ability of the body to adjust to an environment by filtering out distractions or altering sensory receptors.

Linear Perspective

A depth cue in visual perception where parallel lines appear to converge in the distance, aiding in the perception of depth and distance.

Interposition

A visual cue in which one object partially covers another, leading to the perception of depth and order in visual space.