Emil Hinkel Owns and Operates a Large Antique Shop

question 135

Essay

Emil Hinkel owns and operates a large antique shop.He uses the specific identification method to account for transactions that affect inventory.Hinkel recently completed a physical inventory of the merchandise in his shop as part of his year-end work.Today,his accountant called to inform him that it would be necessary to adjust the inventory figure shown on the balance sheet,which will increase Hinkel's tax liability.Hinkel argued that the inventory had to be correct,because he counted it twice and matched every item to an invoice.Cite reasons why the accountant would find it necessary to adjust the inventory even if Hinkel's count is accurate.

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Definitions:

Phosphorus

A chemical element with symbol P and atomic number 15, essential for life, involved in the formation of DNA and RNA, and a key component of ATP, the energy currency of cells.

Plasma Membrane

The plasma membrane is the lipid bilayer that encloses the cytoplasm of a cell, controlling the passage of substances in and out of the cell.

Sodium Chloride

Common table salt, a compound formed from sodium and chlorine atoms, essential for life and used in food seasoning and preservation.

Dissociation

A process in which molecules or ionic compounds split into smaller particles such as atoms, ions, or radicals, often reversibly.