A Company Uses the Perpetual Inventory System

question 20

Multiple Choice

A company uses the perpetual inventory system.The inventory account balance is $50,000.An actual count of inventory reveals that actual inventory is $43,000.Which of the following would be included in the required adjusting entry?

• A) A $43,000 credit to Inventory would be required.
• B) A $50,000 debit to Cost of goods sold would be required.
• C) A $7,000 credit to Cost of goods sold would be required.
• D) A $7,000 credit to Inventory would be required.

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Definitions:

Society

A collection of people engaged in ongoing social interactions, or a substantial social cluster sharing identical geographic or societal territories, generally governed by the same political rulers and prevailing cultural norms.

Qualitative Sociology

The study of nonmeasurable, subjective behaviours (e.g., the effects of divorce).

Emotional Effects

The impact or influence of certain actions, events, or communications on an individual's emotional state, mood, or feelings.

Crime Rates

A measure of the number of reported crimes in a given area, often expressed per 100,000 inhabitants, used to assess and compare levels of crime over time or between regions.