The General Ledger Shows a Balance of $23 678 in the Inventory

question 47

Multiple Choice

The general ledger shows a balance of $23 678 in the Inventory account at the end of the period.A physical inventory shows a count of $22 078.The adjusting entry would be a:

• A)debit to Inventory and a credit to Cash.
• B)debit to Cost of sales and a credit to Inventory.
• C)debit to Cost of sales and a credit to Cash.
• D)debit to Inventory and a credit to Cost of sales.

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Definitions:

Sharpe Measure

A ratio used to evaluate the risk-adjusted return of an investment, calculated by subtracting the risk-free rate from the return of the investment and dividing by the standard deviation of the investment's returns.

Risk-Free Return

The theoretical return on an investment with zero risk, typically associated with government bonds.

Jensen's Measure

A performance evaluation tool that measures the excess return of a portfolio above the expected return, accounting for risk.

Risk-Free Return

The theoretical return on an investment with zero risk, typically represented by government securities like Treasury bills.