The Garrett Company Uses the Perpetual Inventory System

question 3

Multiple Choice

The Garrett Company uses the perpetual inventory system. Although its inventory records indicated $18,000 in the inventory, a physical count showed only $16,250. Which of the following answers indicates the effect of the necessary adjusting entry?

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Decentration

The cognitive ability to consider multiple aspects of a situation simultaneously, important in child development as per Jean Piaget's theory.

Transitivity

A mathematical property indicating that if a relation holds between A and B, and also between B and C, then it must hold between A and C.

Kohlberg's Theory

A theory of moral development proposed by Lawrence Kohlberg, suggesting that individuals progress through a series of stages of moral reasoning.

Conventional Level

A stage in Kohlberg's theory of moral development where individuals adhere to rules and norms to gain social approval or maintain social order.