The adjusting entry to record the amount of inventory shrinkage affects both the balance sheet and the income statement.
Answer the following statement true (T) or false (F)
True
The write-down decreases both assets (inventory) and stockholders' equity (retained earnings). The write-down increases expenses and decreases net income. Cash flow is not affected.
You might also like to view...
The phenomenon of ________ includes consumers creating their own ads and buying and selling products on eBay
A) production orientation B) the triple bottom line orientation C) consumer-generated value D) socially responsible marketing E) the marketing concept
The maintaining disciplined action behavior in adaptive leadership is ______.
A. easy because most people naturally want to confront change B. difficult because most people do not accept leaders who use adaptive behaviors C. difficult because most people do not naturally want to confront change D. easy because most people have dealt effectively with adaptive changes before
An ad for Campbell's soup reads, "We haven't changed that great taste your family's always loved." This is an example of ________ advertising.
A. comparative B. informative C. persuasive D. advocacy E. reinforcement
Your parents are complaining about the price of items today compared to what they cost years ago. If an
automobile that cost $12,000 in 1980 costs $40,000 in 2010, calculate the annual growth rate in the automobile's price. What will be an ideal response?