If the Physical Count of Inventory Revealed $158,000 of Merchandise

question 222

Multiple Choice

If the physical count of inventory revealed $158,000 of merchandise on hand and the inventory records reported $163,000, what would be the necessary adjusting entry to record inventory shrinkage?

• A) debit Merchandise Inventory, $158,000; credit Cost of Merchandise Sold, $158,000
• B) debit Merchandise Inventory, $5,000; credit Cost of Merchandise Sold, $5,000
• C) debit Cost of Merchandise Sold, $163,000; credit Merchandise Inventory, $158,000
• D) debit Cost of Merchandise Sold, $5,000; credit Merchandise Inventory, $5,000

Comprehend the role and functions of investment banks in primary markets.

Recognize the distinction between stocks and bonds as long-term investment vehicles.

Differentiate between money markets and capital markets.

Explain financial intermediation and its impact on investors.

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Definitions:

Insurance Coverage

A contractual arrangement in which an insurer agrees to compensate an insured for loss, damage, or liability in return for payment of a premium.

Electronic Eligibility Features

Digital tools or systems used by healthcare providers to verify a patient's insurance coverage and benefits.

Loss-of-Income Benefits

Financial compensations provided typically through insurance or workers' compensation for individuals who cannot work and earn an income due to a disability or injury.

Insured Disability

A condition where an individual is protected under an insurance policy that provides income in the case they are unable to work due to a disability.