Question
At the end of its Year 1 accounting period, Voss Company had a $35,000 balance in its inventory account. Even so, when the company took
At the end of its Year 1 accounting period, Voss Company had a $35,000 balance in its inventory account. Even so, when the company took a physical count of the inventory, it found only $34,300 of inventory on hand. Which of the following shows how recognizing the inventory shrinkage will affect the Company's financial statements?
| Balance Sheet | Income Statement | Statement of Cash Flows | |||||||||||
| Assets | = | ||||||||||||
| Cash | + | Inventory | = | Liab. | + | Equity | Rev. | - | Exp. | = | Net Inc. | ||
| A. | NA | + | (700) | = | NA | + | (700) | NA | - | 700 | = | (700) | (700) OA |
| B. | NA | + | (700) | = | NA | + | (700) | NA | - | NA | = | NA | NA |
| C. | NA | + | 700 | = | NA | + | 700 | 700 | - | NA | = | 700 | NA |
| D. | NA | + | (700) | = | NA | + | (700) | NA | - | 700 | = | (700) | NA |
Multiple Choice
Option A
Option B
Option C
Option D
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Lead Auditor ISO 22000 2018 Food Safety Management Systems FSMS Course
Authors: Marius Hauta
1st Edition
B0BTSCBJ82, 979-8376159750
