The Inventory Account Balance Is $50,000

question 15

Multiple Choice

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 adjusting entry? (Assume a perpetual inventory system)

• A)a $43,000 credit to Merchandise Inventory
• B)a $50,000 debit to Cost of Goods Sold
• C)a $7,000 credit to Cost of Goods Sold
• D)a $7,000 credit to Merchandise Inventory

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Definitions:

Organizational Structure

Organizational structure outlines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims, defining how job roles and responsibilities are distributed.

Integrator Roles

Positions or responsibilities in an organization that involve coordinating and synthesizing information across different departments to ensure aligned and efficient operations.

Direct Supervision

A management approach where managers closely oversee and control the work of their subordinates, often involving immediate feedback and instructions.

Informal Communication

The unofficial and casual exchange of information between individuals in an organization, outside formal channels.