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:

New Public Management

An approach to running public service organizations that is inspired by private sector principles and practices, emphasizing efficiency, performance measurement, and a service-oriented culture.

Solidarity Unionism

A model of labor organizing that emphasizes direct action and mutual support among workers, bypassing formal union structures and legal recognition processes.

Co-determination

A practice where workers have a role in the management and decision-making processes of a company, often through representation on boards.

Fortress Unionism

A union strategy focused on protecting the interests of current members, often through defensive tactics, rather than seeking to organize new members.