The General Ledger Shows a Balance of $23,678 in the Inventory

question 51

Multiple Choice

The general ledger shows a balance of $23,678 in the Inventory account at the end of the period.A physical inventory shows a count of $22,078.The adjusting entry would be a:

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

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Definitions:

Decision Making

The cognitive process of selecting a course of action among several alternatives to achieve a desired outcome.

Reasoning

refers to the cognitive process of looking for reasons, engaging in logical thinking, and arriving at conclusions based on premises.

System II Thinking

A cognitive process that involves analytical, effortful, and logical thinking as opposed to quick, instinctual, and often biased System I thinking.

System I Thinking

A term from dual-process theory referring to fast, automatic, emotional, and subconscious thought processes.