Inventory Shortages Are Debited to

question 88

Multiple Choice

Inventory shortages are debited to

• A) Merchandise Inventory
• B) Cost of Goods Sold
• C) Inventory Short/Over
• D) Sales

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Definitions:

Capitals

Financial assets or the financial value of assets, such as cash and securities, owned by a business.

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Supplies

Materials or items which are used in the operation of a business or needed in the production process.

Services

Economic activities that are intangible, are not stored, and do not result in ownership transfer from the service provider to the service receiver.