The Adjusting Entry to Reflect Inventory Shrinkage Is a Debit

question 207

True/False

The adjusting entry to reflect inventory shrinkage is a debit to Income Summary and a credit to Inventory Shrinkage Expense.

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Definitions:

HRM System

Human Resource Management System, a constellation of software and procedures for managing an organization's employee-related tasks, including recruitment, payroll, and performance management.

Organizational Environment

The set of external and internal factors that influence an organization's operations, including economic, technological, sociocultural, and legal elements, among others.

Horizontal Alignment

The coordination and integration of strategies, processes, and activities across different departments or functional areas within an organization.

Workforce Forecasting

The process of predicting an organization’s future employment needs in order to help ensure that it has the right number of workers with the right skills at the right time.