Which of the Following Statements Regarding Inventory Shrinkage Is Not

question 7

Multiple Choice

Which of the following statements regarding inventory shrinkage is not true?

• A)Inventory shrinkage refers to the loss of inventory.
• B)Inventory shrinkage is determined by comparing a physical count of inventory with recorded inventory amounts.
• C)Inventory shrinkage is recognized by debiting an operating expense.
• D)Inventory shrinkage is recognized by debiting Cost of Goods Sold.
• E)Inventory shrinkage can be caused by theft or deterioration.

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