Answer the following statements true (T) or false (F)
1. Shrinkage refers to the loss of inventory due to theft, damage or other similar occurrences.
2. If inventory shrinkage has occurred, the Inventory account will be credited for the amount of lost inventory.
3. A small company's physical inventory count identified shrinkage in the amount of $350. This probably would not need an adjustment as it isn't a material amount.
4. If the ending inventory is overstated in Year 1, then the Cost of Goods Sold will be overstated in Year 2
5. If the ending inventory is understated in Year 1, then the Gross Profit will be understated in Year 2.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
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Defective formation of a limited partnership occurs when a certificate of limited partnership is not properly filed
Indicate whether the statement is true or false
A company borrowed $10,000 by signing a 180-day promissory note at 9%. The maturity value of the note is: (Use 360 days a year.)
A. $11,800 B. $10,900 C. $10,075 D. $10,300 E. $10,450
When a financial institution hedges the interest-rate risk for a specific asset, the hedge is called a ________
A) macro hedge B) micro hedge C) cross hedge D) futures hedge
A good reason for relocating a typical manufacturing business is to
A. stabilize income taxes. B. increase customer traffic. C. be closer to a pool of highly skilled labor. D. provide free-flow space.