The Following Information Pertains to Inventory Held by a Company

question 8

Multiple Choice

The following information pertains to inventory held by a company at December 31, 2013. What is the amount of inventory loss shown on the income statement under U.S. GAAP?

• A) $1,000.
• B) $2,000.
• C) $4,000.
• D) $5,000.
• E) $8,200.

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Definitions:

Incentive

A factor, often a reward or punishment, that motivates an individual to perform an action or behave in a specific manner.

Need

A requirement necessary for survival or well-being.

Drive

An internal motivational state that compels an organism to engage in behavior necessary to satisfy a physiological need.

Incentive

A factor that inspires or prompts a person to act or behave in a specified manner.