When Using the Periodic Inventory System,there Is No Need to Record

question 223

True/False

When using the periodic inventory system,there is no need to record an adjusting entry for inventory shrinkage.

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Definitions:

Cash Overages

Excess of actual cash received over the expected amount, often caused by either errors in transactions or more sales than recorded.

Cash Discounts

Incentives offered by sellers to encourage buyers to pay their bills quickly, usually expressed as a percentage of the invoice amount if paid within a specific period.

Internal Controls

Processes put in place by management to ensure reliability of financial reporting, effective and efficient operations, and compliance with laws and regulations.

Cash Payments

Outflows of cash to settle obligations or purchase goods and services.