The Physical Count of Inventory May Be Less Than the Accounting

question 72

Multiple Choice

The physical count of inventory may be less than the accounting records due to the following:

• A) Receiving Errors
• B) Shoplifting
• C) Accounting Errors
• D) All of the above

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Definitions:

Prepaid Subscriptions

Prepaid subscriptions are payments made in advance for services or products to be received in the future, often resulting in a liability for the company until the service period has occurred.

Subscription Expense

Recurring costs associated with subscribing to a service or product on a regular basis.

Adjusting Entry

An accounting record made to update the value of an account to its true value and reflect expenses or revenues that have occurred but aren't yet recorded.

Account Form

A way of presenting a balance sheet where assets are on one side and liabilities and equity are on the other.