As a Result of Taking an Annual Physical Inventory,it Usually

question 75

Multiple Choice

As a result of taking an annual physical inventory,it usually is necessary in a perpetual inventory system to make an entry:

• A)Reducing assets and increasing the cost of goods sold.
• B)Reducing assets and increasing liabilities.
• C)Reducing the cost of goods sold.
• D)Increasing assets and increasing the cost of goods sold.

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Definitions:

Accumulate Tax-Free

The process of earning or saving money without having to pay taxes on the gains, usually within specific investment accounts or schemes.

Workers' Compensation Insurance

Insurance that provides wage replacement and medical benefits to employees injured in the course of employment.

Work-Related Accidents

Accidents that occur in the course of employment, potentially resulting in injury or occupational disease.

Defined-benefit Plan

A type of pension plan in which an employer promises a specified pension payment in retirement that is predetermined by a formula based on the employee's earnings history, tenure of service, and age.