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:

Distribution of Power

The way in which authority, control, and decision-making capabilities are allocated and exercised across different levels within an organization or society.

Economic Growth

The increase in the production of goods and services in an economy over a period of time, often measured by the rise in the Gross Domestic Product (GDP).

Income

The monetary payment received by an individual or household for work or through investments.

Wealth

The abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions.