A Company's Ledger Shows an Inventory Balance of $20,000 and a Physical

question 118

Multiple Choice

A company's ledger shows an Inventory balance of $20,000 and a physical count of the inventory shows $19,000. Which of the following entries is needed to record the shrinkage?

Recognize the ethical and legal considerations in the administration of drug tests to job applicants.

Identify and differentiate between the various types of interviews used in employment selection.

Understand the advantages and limitations of different interview types for employee selection.

Grasp the principles of nondirective and directive interviews and their impact on interview outcomes.

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Definitions:

LIFO

"Last In, First Out" - an inventory valuation method where the most recently produced or purchased items are recorded as sold first.

FIFO

"First-In, First-Out," an inventory valuation method where goods first purchased or produced are the first to be sold or used.

Weighted Average

Weighted average is a calculation that takes into account the varying degrees of importance of the numbers in a dataset, assigning weights to some of the numbers more than others.

Inventory Carrying Cost

The total cost of holding inventory, which includes warehousing, depreciation, obsolescence, spoilage, insurance, and taxes, among others.