The General Ledger Shows a Balance of $65,300 in the Inventory

question 17

Multiple Choice

The general ledger shows a balance of $65,300 in the Inventory account at the end of the period.A physical inventory shows a count of $67,900.The adjusting entry would be a:

• A) debit to Cost of goods sold and a credit to Inventory.
• B) debit to Cost of goods sold and a credit to Cash.
• C) debit to Inventory and a credit to Cost of goods sold.
• D) debit to Inventory and a credit to Cash.

Understand the effects of inventory errors on financial statements.

Analyze the impact of inventory valuation methods on financial reporting.

Calculate and interpret inventory turnover ratios.

Understand the principles and effects of writing down inventory to net realizable value.

---

Definitions:

Transitional

Pertaining to or involving a phase of change from one state, condition, or stage to another, often implying a process of adaptation or evolution.

Winnicott

Refers to Donald Winnicott, a British psychoanalyst known for his work on developmental psychology and object relations theory.

False Self

A psychological concept referring to a persona adopted by an individual to conceal their true feelings or to meet the expectations of others.

Psychological Development

The changes in cognitive, emotional, and social capacities and behaviors across the lifespan, influenced by biological, environmental, and cultural factors.