Which of the Following Is an Appropriate Journal Entry to Recognise

question 28

Multiple Choice

Which of the following is an appropriate journal entry to recognise inventory items that have been lost?

• A)
• DR Inventory(asset)
• CR Provision for inventory losses (liability);
• B)
• DR Inventory losses (expense)
• CR Inventory (asset);
• C)
• DR Cost of Goods Sold (expense) CR Inventory (asset);
• D)
• DR Provision for Inventory losses (liability) CR Inventory (asset).

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Definitions:

General Electric

A multinational conglomerate corporation operating in sectors like aviation, power, healthcare, and renewable energy.

Restraint of Trade

Practices or agreements that restrict free competition in business and trade, often scrutinized under antitrust laws.

Sherman Act

A landmark federal statute passed in the United States to prohibit monopolies and promote competition.

Horizontal Merger

A business consolidation that occurs between firms operating in the same industry, often to create more efficient economies of scale.