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.

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Definitions:

International Monetary Fund

An international organization created to foster global monetary cooperation, secure financial stability, facilitate international trade, and reduce poverty around the world.

World Bank

A global financial organization offering loans and grants to low-income country governments to support capital projects.

Relative Poverty

A condition where individuals or groups have significantly less income or resources compared to the average in their society.

Absolute Poverty

A condition where individuals or families are unable to meet their basic needs for survival, such as food, shelter, and healthcare.