If the Physical Inventory Is Less Than the Amount in the Accounting

question 31

Multiple Choice

If the physical inventory is less than the amount in the accounting inventory records, this is known as

• A) Inventory Short/Over
• B) Inventory Shrinkage
• C) Inventory Adjustment
• D) Inventory Discrepancy

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Definitions:

Spring Water

Water that flows naturally to the surface from a subsurface aquifer.

Bottled Water

Packaged drinking water sold in plastic or glass bottles; its quality can vary depending on the source and treatment methods.

Condensation

The process by which a gas transforms into a liquid, often observed as water vapor in the air turning into liquid water droplets on cool surfaces.

Hydrologic Cycle

The continuous movement of water on, above, and below the surface of the Earth, including processes such as evaporation, precipitation, and infiltration.