According to the company's records, this item would appear as a(n): Deduction from the amount on the bank reconciliation. A debit memo for an NSF check that was received from a customer was included with the bank statement.
What is discovered during the bank reconciliation?The bank column in the cash book displays the cash at the bank, whereas the cash column in the cash book displays the available cash. Similar to this, every consumer has a record with the bank. Deposits are recorded on the credit side of the bank books, whilst withdrawals are recorded on the debit side. Unpaid checks are already listed in the book, thus they are a bank reconciliation item. Only for goods needed for book reconciliation will the company create journal entries. Therefore, there is no need to journalize unpaid checks. The right response is outstanding checks. The transit deposit is added to the bank reconciliation statement, but the unpaid checks are subtracted. Thus, the right response is
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according to bruno solnik's classic study, a fully diversified portfolio that contains stocks from many countries is blank as risky as a fully diversified portfolio that contains only us stocks. multiple choice question. more than double less than half equally
According to Bruno Solnik's classic study, a fully diversified portfolio that contains stocks from may countries is less than half as risky as a fully diversified portfolio that contains only US stocks. A diversified portfolio can be defined as a collection of different investments that combine to reduce an investor's overall risk profile.
Diversification portfolio is including owning stocks from several different countries, industries, risk profiles, as well as other investments such as commodities, bonds, and real estate. The example of diversified portfolio is bonds, fixed interest, cash, property, shares, property, and private equity.
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magine an economy where there are 5,500 working age adults. 4,000 are currently employed, 500 are looking for work, 300 are students who are not looking for work, and 200 are retired. what is the unemployment rate in this economy?
The unemployment rate is 11.11%, considering total working population, employed and unemployed population.
Given information,
Total working age adults = 5,500
Currently employed = 4000
Unemployed person = 500
Unemployment rate = No. of unemployed persons/ No. of unemployed
persons+ No. of unemployed persons
Unemployed rate = 500/ 4500*100 = 11.11%
The proportion of the working population without a job is referred as the unemployment rate. It is a poor indicator, which means that instead of foreshadowing shifts in economic conditions, it often increases or decreases in response to them. The unemployment rate is most likely to rise whenever the economy is struggling and there are relatively few positions available. It is reasonable to anticipate a decline in it when economy continues to grow effectively and there are plenty of jobs that are available.
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a business has an $8,000 note receivable outstanding. the 60-day, 10% note is dated december 6. on december 31, the business would record an adjusting entry to ?
For $55.56, the company would make an adjustment entry to credit Interest Income.
What is income from interest?Interest income refers to earnings from investments like savings accounts and certificates of deposit. Net interest income is the sum of revenue and expenses for financial institutions.
What is a company's interest income?The amount paid to an entity for lending or allowing another entity to use its funds is called interest income. The sum of money invested by an investor in an investment or project is referred to as interest income on a broader scale.
Is interest pay or cost?On the income statement, interest expense is listed as a non-operating expense. It is the interest that is due on any borrowing, including bonds, loans, convertible debt, and credit lines. It is basically calculated by multiplying the debt's principal balance by the interest rate.
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in the five phases of team development described by dr. bruce tuckman, when do team members conduct an analysis of the project and the performance of the team? quizlrt
At the adjourning phase the team members conduct an analysis of the project and the performance of the team.
What are dr.bruce tuckman five phases of team development and who is dr.bruce tuckman?Dr. Bruce wayne tuckman was an american psycological researcher who searched and worked at the project of dynamics.Here is asked among five phases , which phase have team members conducting an analysis of the project.The several other phases of dr.bruce wayne tuckman includes forming, storming , norming etc.Hence the adjourning is the phase amongst the five phases in which team members conduct an analysis of the project and the performance of the team.To know more about team visit:
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question content area the accounting principle upon which deferrals and accruals are based is a.cost b.conservatism c.matching d.price-level adjustment
(c) Matching principles .matching principle that says that revenues and any related expenses should be recorded in the same period.
What is deferral accounting ?
In a company's general ledger, deferrals are a sort of "adjusting" entry that postpones the recognition of a transaction in the company's accounting records to a future fiscal quarter (or periods). Revenue, or the amount to be collected, and costs, or the amount to be paid, be postponed via deferrals.
The matching principle and revenue recognition are the two accounting principles that underlie both revenue and expenditure deferral. The Financial Accounting Standards Board (FASB) describes the revenue recognition concept, which is key to accrual-based accounting, as "when the selling business achieves a performance obligation by transferring a promised item or service to a customer, giving the customer ownership."
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on-the-job training can amount to no training if the trainers simply allow the trainees to learn the job on their own. question 58 options: true false
The new hire will learn how to perform the required tasks incorrectly if the employee performing the job lacks skill.
It's possible that management is unaware of the employee's specific incompetence and is unable to take corrective action.
How does on-the-job training work?
An example of workplace training is on-the-job training. A trainee gets hands-on experience with tools, techniques, machinery, software, materials, or equipment during this process. The coworker, training manager, or professional trainers provide this training.
Off-the-job training or on-the-job training is superior.
Employees learn theoretical knowledge through off-the-job training, while effective on-the-job training improves technical practical skills. Attending both on-the-job and off-the-job trainings will enhance employees' motivation and attitudes.
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when invested at an annual interest rate of 6% an account earned $180.00 of simple interest in one year. how much money was originally invested in account?
$3,000 was originally invested in account when invested at an annual interest rate of 6% an account earned $180.00 of simple interest in one year.
Interest paid by bank = 6%
Principle (invested) is unknown
Rate changed to decimal= 0.06
Time is 1 year
simple interest formula-
I = PRT
180= P *0.06*1
180/.06 = .06P/ .06
3,000 = P
$3,000 was originally invested in account.
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you own a small manufacturing business that produces widgets. you have spent $150,000 acquiring the fixed assets you need to produce widgets. each widget costs you $2 to make and they sell for $15 each, so your variable cost is 13.3% of the overall revenue. at your current level of operating leverage, how many widgets must you sell to break even? 13,482 19,950 11,539 10,000
11,539 widgets must be sold in order to achieve break-even at the current operating leverage.
How does operating leverage work?A cost-accounting technique called operational leverage assesses how much a company or project can raise operating profitability by raising revenue. High operating leverage companies have low variable costs and high gross margins when generating revenue.
You must finish the operational leverage calculation to determine the price at which to make a profit and pay your expenses. Additionally, it can assist you in comprehending the efficiency with which your company can generate profits by making use of fixed-cost assets like machinery or storage facilities.
Calculation:
Due to this:
$150,00 for fixed assets
Sales price = $15 Variable cost = $2
The contribution margin minus fixed costs equals the break-even point.
Sales per unit less variable cost per unit ($15-$2=$13) equals contribution margin.
Break-even point (Sales) is $150,000 divided by $13 to equal 11,539 units.
Therefore, in order to break even, 11,539 widgets must be sold.
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Which financial statement shows how much cash was paid for newly acquired property, plant and equipment when cash is used for part or all of the purchase?.
When cash is used for all or a portion of the transaction, the statement of cash flows shows how much was paid in cash for newly acquired property, plant, and equipment. The cash inflows and outflows for the time period covered by the statement are displayed in the statement of cash flows.
What is cash flow?cash flows shows how much was paid in cash for newly acquired property, plant, and equipment. The cash inflows and outflows for the time period covered by the statement are displayed in the statement of cash flows.Initially, the cost of purchasing equipment is not shown on the revenue statement. Instead, it is shown as a rise in the line item for fixed assets on the balance sheet.Income Statement: A cash outflow related to the purchase of equipment can be seen under Cash Flow from Investing Activities.If you pay cash for it: The following three effects occur when equipment is acquired with cash in such a situation: The balance sheet's asset value increased but the cash balance decreased. Depreciation on the income statement increased. reported in the cash flow statement's investment section.To learn more about Cash flows refer to:
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Equipment costing $20,000 with $17,800 of accumulated depreciation is sold for $2,500 cash. The journal entry will involve a ________.
A capital asset's net book value is decreased by accumulated depreciation, which is listed under the long-term assets portion of a balance sheet. The journal entry involve a credit portion
Explain about the Accumulated depreciation?
Accumulated depreciation is the cumulative amount of depreciation that has been applied to an asset up to a specific point. Each period's depreciation expense adds to the starting cumulative depreciation amount.
The running total of depreciation that has been charged against the value of an asset is known as accumulated depreciation. On the balance sheet, fixed assets are shown as a debit, and accumulated depreciation is shown as a credit, offsetting the asset.
Accumulated depreciation is accounted for as a credit throughout the course of the asset's useful life. Accumulated depreciation is recorded as a debit against the asset's credit value when it is sold or retired. It has no effect on net income.
17800 x 1/20000 x 2500
=2225 Accumulated depreciation
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26. on december 31, 2018, blais industries had long-term debt totaling $120,000 on their balance sheet. during 2019, they paid $10,000 in interest on that debt and $50,000 in principal. during the year they also issued new long-term debt totaling $20,000. what is the balance in their long-term debt account at the end of 2019? $80,000 $90,000 $100,000 $140,000
The total debt at the end of 2019 is $90000
Long-term debt as on 31st December 2018 = $120000
Interest paid in 2019 = $10000
Principal paid in 2019 = $50000
Debt with a longer maturity period is referred to as long-term debt. The issuer's financial statement reporting and financial investing are two ways to look at long-term debt. Companies are required to show long-term debt issuance and all related payment commitments in their financial statements.
Since the interest amount does not reduce the principal amount, we will subtract only the principal paid to arrive at the debt remaining:
Remainig debt = 1200000-50000 = $70000
Additional debt issued = $20000
Total debt at the end of the year = $70000+$20000 = $90000
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many locations require that renters be paid interest on their security deposits. if you have a security deposit of $2,300, how much would you expect to receive in interest per year at 3 percent?
As a result, you should anticipate receiving $69 annually in interest.
What is simple interest?
Simple interest is a quick and simple formula for figuring out how much interest will be charged on a loan. The daily interest rate, the principle, and the number of days between payments are multiplied to calculate simple interest.
Although some mortgages employ this calculation approach, this kind of interest typically relates to auto loans or short-term loans.
The daily interest rate, the principle, and the number of days between payments are multiplied to determine simple interest.
Consumers who pay their loans off on time or ahead of schedule each month benefit from simple interest.
Simple interest loans are frequently used for auto loans and short-term personal loans.
Calculation of expected interest
The money you put into a security deposit is still yours, and just like with a bank deposit, you should get interest on it.
You should receive the following interest on a $2,300 deposit at 3% per year:
2,300 * 0.03 = $69
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A share of stock with a beta of 0. 75 now sells for $50. Investors expect the stock to pay a year-end dividend of $2. The t-bill rate is 4%, and the market risk premium is 7%. Suppose investors believe the stock will sell for $52 at year-end. Calculate the opportunity cost of capital. Is the stock a good or bad buy? what will investors do? at what price will the stock reach an "equilibrium" at which it is perceived as fairly priced today?.
What the investors will do depends on whether the actual return will be higher, lower or the same as the required return (Opportunity cost of capital) .
What is Equilibrium in business?When market supply and demand are in balance, prices become steady. This is known as equilibrium. In general, a surplus of goods or services leads to lower prices, which increases demand, whereas a shortfall or undersupply raises prices, which decreases demand.The holding period return, which is (earnings (dividends) + (ending stock price - beginning stock price))/beginning stock price = (2 + (52 - 50))/50 = 4/50 = 8%, can be used to determine the actual return.CAPM can be used to determine the Opportunity Cost of Capital. = Risk Free Rate + beta(Market Premium) = 4% + 0.75(7%) = 9.25%The stock is a bad buy since the Opportunity Cost of Capital exceeds the Actual Return on the stock.Investors won't buy anything.
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Equipment costing $20,000 with $17,800 of accumulated depreciation is sold for $2,500 cash. The journal entry will involve a ________.
Debit to accumulated depreciation . $1,050.
A natural credit balance is accrued depreciation. Accumulated depreciation lowers the total value of assets recognized on the financial statement even though it is listed in the asset portion of the balance sheet since assets are fundamentally debit accounts.
How does accumulated depreciation work?A natural credit balance is accrued depreciation. Accumulated depreciation lowers the total value of assets recognized on the financial statement even though it is listed in the asset portion of the balance sheet since assets are fundamentally debit accounts.As a contra-asset account, the balance sheet. A contra-asset account called accumulated depreciation appears on the balance sheet below the account Property and Equipment.The value at which a firm records an asset on its balance sheet is known as net book value, sometimes known as net asset value. It is determined by subtracting accumulated depreciation, accumulated amortization, accumulated depletion, or accumulated impairment from the asset's initial cost.To learn more about Accumulated depreciation refer to:
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cyclical unemployment is the group of answer choices portion of unemployment that is due to the normal working of the labor market. unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work. portion of unemployment that is due to changes in the structure of the economy that result in a significant loss of jobs in certain industries. unemployment that occurs during recessions and depressions.
Cyclical unemployment is the group of unemployment that occurs during recessions and depressions.
Economists describe cyclical unemployment as the end result of organizations no longer having sufficient demand for exertions to appoint all folks who are looking for paintings at that factor inside the commercial enterprise cycle. whilst call for for a product and provider declines, there may be a corresponding discount in deliver production to compensate.
Cyclical unemployment is the issue of standard unemployment that outcomes without delay from cycles of economic upturn and downturn. Unemployment normally rises all through recessions and declines during economic expansions.
Cyclical unemployment may be because of a recession, which is a duration of negative monetary increase. Cyclical unemployment can also be as a result of downturns in a enterprise cycle in which call for for items and services decreases through the years.
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under which circumstances will two investors choose different risky portfolios (portfolios that differ in the relative proportions of the various risky assets
The two investors will select different risky portfolios if they have different expectations for the expected returns and standard deviations of the various risky assets.
What is a risk in context of investment ?Risk, regarding finance, can be defined as the probability that an investment will not be able to yield outcomes or return that was intended. The possibility of losing the entire or a portion of the initial investment is risk.
Typically, previous behaviour and outcomes are considered when calculating risk. In finance, the standard deviation is a frequent indicator for assessing risk. A gauge of asset price volatility in proportion to average historical values over a given time period is provided by the standard deviation.
Overall, by comprehending the fundamentals of risk and how it is quantified, it is possible and smart to control investment risks.
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The complete question is mentioned below :
Under which circumstances will two investors choose different risky portfolios (portfolios that differ in the relative proportions of the various risky assets, and not just in the relative proportion of the risk-free asset to the risky assets)?
A. If the two investors have different levels of risk aversion.
B. If the two investors have different levels of wealth.
C. If the two investors disagree about the expected returns and standard deviations of the various risky assets.
D. All of the above
select all that apply an unfavorable labor efficiency variance can result from blank . multiple select question. insufficient product demand the payment of overtime premiums faulty equipment poorly motivated workers
An unfavorable labor efficiency variance can result from :-
poorly motivated workersinsufficient product demandLabor is the amount of physical, intellectual, and social attempt used to produce goods and offerings in an economy. It resources the information, manpower, and service needed to show raw materials into finished services and products
Labor is the effort that humans contribute to the production of products and offerings. hard work sources include the paintings accomplished through the waiter who brings your food at a nearby restaurant in addition to the engineer who designed the bus that transports you to school. exertions represents the human aspect in generating the products and offerings of an economy. finding sufficient people with the right skills to fulfill growing call for. This often consequences in growing wages in a few industries.
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which of the following statements describes one the strengths of group decision making? group of answer choices group decision making results in a higher-quality decision then individual decision making. groups typically take much less time to reach a solution than an individual. in a group, no one person or group will ever dominate the decision making process. conformity is not important when it comes to making a group decision. when making decisions, groups have greater accountability than individuals.
A statement which describes one of the strengths of group decision making is that: A. decision making results in a higher-quality decision than individual decision making.
What is a group?A group can be defined as a group of people or set of individuals that have various ideas, unique knowledge, opinions, skill set, values, and experience, who come together, in order to successfully achieve a predefined or set goal and objective.
What is the decision-making process?The decision-making process is a cognitive process that involves obtaining information, analyzing them, and then evaluating alternatives, in order to enable the proper selection of an optimum and higher-quality solution to a particular problem.
In this context, we can reasonably infer and logically deduce that group decision making facilitates a higher-quality decision in comparison with individual decision making.
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Complete Question:
Which of the following statements describes one of the strengths of group decision making?
decision making results in a higher-quality decision than individual decision making.
groups typically take much less time to reach a solution than an individual.
in a group, no one person or group will ever dominate the decision making process.
conformity is not important when it comes to making a group decision.
when making decisions, groups have greater accountability than individuals.
true or false? the average level of tariffs on imported products charged by industrialized countries was 40% in 1946. by 1990, after decades of gatt negotiations, it was up to more than 60%.
The statement is false.
This is because the Average industrial products tariffs were lowered through the GATT negotiations from 40% in 1947 to less than 5% in 1993. It was an early step towards economic globalization.
What is GATT?
The GATT (General Agreement on Tariffs and Trade) is an international legal agreement that was created with the aim of promoting trade by lowering or removing trade restrictions like tariffs and quotas.
On 30 October 1947, the General Agreement on Tariffs and Trade (GATT) was signed by 23 nations at "The Palais des Nations" in Geneva.
The General Agreement on tariff and Trade (GATT) is replaced by the WTO, but the General Agreement still exists as the WTO's umbrella treaty for trade in goods, updated as a result of the 'Uruguay Round negotiations'.
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there are many different types of positions in an advertising agency. what are the primary positions likely to be found in an agency such as the brownstein group?
We will check out at the three sides of straightforwardness according to the accompanying viewpoints: the distributer, the promoter, and the client.
What role does advertising play?A company can focus on a specific aspect of its products or services with an ad position strategy. The main idea or message, such as superior customer service, is the ad position itself. In their advertising, small business owners can emphasize any number of positions or benefits.
What are the four advertising positions?Advertising on Display.
Advertising via video.
Advertising on mobile devices.
Native marketing.
What role does advertising play?
A company can focus on a specific aspect of its products or services with an ad position strategy. The main idea or message, such as superior customer service, is the ad position itself. In their advertising, small business owners can emphasize any number of positions or benefits.
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pull mechanisms to encourage drug and vaccine development could include: group of answer choices tax credits patent extensions on other products of the firm that develops the desired product both prizes for successful development of the desired product and patent extensions on other products of the firm that develops the desired product. prizes for successful development of the desired product
Pull mechanisms to encourage drug and vaccine development could include prizes for successfully developing the desired product.
One of the largest reasons the pharma industry is not interested in antibiotic drug development is that it is an extremely pricey challenge. in line with estimates, the value of growing an antibiotic is around $1.5 billion.
To solve this hassle the university is engaged in go-disciplinary studies including inspecting deep-sea sponges in the look for new antibiotics. developing new antibiotics.
Inventing new technologies to hit upon antibiotic resistance in blood samples.
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kiran needs additional short-term financing for his robotics company, so he asks his suppliers if they could issue a discount if he pays his bills early. what type of financing resource is kiran using? factoring barter peer-to-peer lending trade credit
The type of financing resource that Kiran is using trade credit.
What is trade credit?When products and services are purchased on credit, one merchant will lend money to another. Supply purchases can be made with trade credit and delayed payment. Organizations in the business world frequently use trade credit as a form of short-term funding. It is given to clients with a respectable level of financial standing and goodwill.
Trade credit comes in a variety of widely used formats. The use of customized forms varies across sectors. They all have in common how firms work together to deploy money effectively to achieve diverse business goals.
Most business-to-business (B2B) sellers in the US use trade credit as their primary source of capital and as their greatest method of capital expenditure.
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question 3: lamar finds reconciling his bank statement with his quickbooks file at the end of the month too time-consuming. upon learning that his bank offers a bank feed with quickbooks, lamar signs up for the service. how will this change his monthly reconciliation?
Because Lamar signs up for quickbooks, reconciliation will be quicker because most transactions will be matched already. So that, Lamar does not need wait too long for his reconciliation.
A QuickBooks can be defined as a financial management suite or full-featured business complete with tools for accounting, tax filing, invoicing, bank account tracking , inventory, payroll, and reconciliation. In accounting, Reconciliation can be defined as the process of comparing transactions and activity to supporting documentation. The function of reconciling account is to ensure that the money leaving an account matches the actual money spent.
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management-by-exception contributes to effective transactional leadership by doing what? (chapter 9) group of answer choices balancing goals and ambitions reinforcing a sense of fairness among employees adjusting the difference between individual and organizational goals all of the above rewarding good behaviors in public ways
A leadership style called transactional leadership, which is often referred to as managerial leadership, uses rewards and penalties to ensure that employees perform to their full potential.
Management by exception is what kind of leadership?
A leadership strategy known as "management by exception" encourages staff to submit only the most pressing concerns to management, allowing managers to focus their time and energy on the most crucial duties.
How well does transactional leadership work?
Transactional leaders are really clear. Employees are fully aware of what their boss expects of them. They feel successful in achieving their clearly stated goals and objectives as a result. When collective performance matters, this results in effective leadership.
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which of the following internal record-keeping methods can a parent choose to account for a subsidiary acquired in a business combination? multiple choice initial value, equity, or partial equity. initial value, lower-of-cost-or-market-value, or equity. initial value, equity, or book value. initial value, lower-of-cost-or-market-value, or partial equity. initial value or book value.
Initial value, equity, or partial equity can a parent choose to account for a subsidiary acquired in a business combination.
What is business combination?
A business combination is a deal in which one company acquires control of another (the acquiree). Business combinations are a frequent technique for organisations to expand in size, rather than organic (internal) growth. Combinations can be utilised to quickly gain market share, expand product lines, and enter new markets. A business is an integrated set of activities and assets that can offer a return on investment in the form of dividends, cost savings, or other economic benefits to investors. A normal business has inputs, operations, and outputs.
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treasury stock that had been purchased for $5,500 last month was reissued this month for $6,000. the entry to journalize the reissuance would include a credit to
When an organization buys back shares from stockholders, it uses a Treasury stock account.The account has a negative nature and a debit balance that lowers the equity balance.
The Treasury Stock Account should always be recorded at par value, it should be noted.
Given,
Cash = $6000
Treasury Stock = $5,500
Capital received from the sale of Treasury Stock = $500
How Does Treasury Stock Work?The term "treasury stock," also referred to as "treasury shares" or "reacquired stock," refers to previously outstanding stock that has been repurchased by the issuing company from its stockholders. As a result, there are fewer shares available for purchase on the open market.
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Merit scholarships can be awarded for high gpas or test scores, honors recognition, leadership roles and _____.
Merit scholarships can be awarded for high GPAs or test scores, honors recognition, leadership roles, and community service.
What does a merit-based scholarship mean?Academic, athletic, and artistic achievement are the usual criteria used to award merit scholarships, along with personal interests. Some merit scholarships take into account financial necessity as well, although recognizing skill is the main goal.
For the most part, merit-based rewards require strong academic performance, challenging coursework, and high scores on the SAT or ACT, all of which can help you stand out from the competition. What will set your application apart from the competition is the scholarship essay you submit.
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what is the premise behind the pricing of prestige products or services? multiple choice question. the higher the price, the greater the status the lower the price, the greater the status the lower the price, the higher the value the higher the price, the lower the value
The premise behind the pricing of prestige products or services is the higher the price, the greater the status the lower the price.
Product pricing is a manner that involves the interpretation of product price into quantitative phrases. Pricing choice is usually made before its initial launch to the market, but, businesses can trade the selling rate at any factor for a variety of motives.
In markets with growing quantity and rate pressure, the right pricing method is important to stay competitive. It brings you the price you deserve on your services and products provided and secures the profits you want to put money into change and boom.
Fee-plus pricing strategy or value-based total pricing approach is an important approach that works by thinking about the whole cost of creating a product and including a markup to that to decide the price of a product. As a place to begin, it is a good and easy strategy.
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rachel and tom have worked together for years and have decided to strike out on their own with a really great business idea. unfortunately they don't have any money to start their own business and will probably need investors or shareholders, and their business idea is extremely risky. but with risk comes reward, they always say! what would be the best type of business for them to start? group of answer choices
In exchange investors for an ownership stake in a company, venture capitalists are private equity firms that provide sufficient time and resources business.
This might help fund start-up investors enterprises or local corporations that wish to grow but lack access to equity markets. Through the support of firms and the financing of innovations, it seeks to generate returns to individual liability. When a borrower obtains funding directly from the market, like when issuing stocks or shares, this is known as direct financing business.
Investors While indirect finance refers to a sort of borrowing when the borrower obtains the funds with the aid of middlemen or other outside parties.
A. The number of shareholders in public firms is relatively great since shares are given out on an individual basis at low prices, but there are few owners in private companies.
B. In a partnership, the business is not taxed, but the partners who own it are; in a private corporation, the business is treated as a separate legal entity and must pay taxes as such.
C. Unlike a public corporation, a sole proprietorship does not have a separate legal entity for its firm. Only public corporations have limited liability as a result.
D. Shareholders of a public corporation own a partnership, and vice versa business.
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In a retail business, the difference between the account balance of inventory and the inventory on hand is called a.inventory shrinkage. b.inventory reduction. c.adjusted inventory. d.cost of goods sold.
Every retail business must contend with shrinkage, and some companies attempt to offset the potential decline in revenues by raising the price of already-in-stock items.
Shrinkage: What Is It?
Inventory loss due to issues like employee theft, shoplifting, human mistake, vendor fraud, damage, and cashier error is known as shrinkage. Shrinkage is the discrepancy between the inventory that is recorded on a company's balance sheet and the inventory that really exists. The loss of inventory caused by this idea ultimately results in a loss of income, making it a major problem for retailers.
Why Is It Important to Understand Shrinkage?
The difference between the real (physical) inventory and the recorded (book) inventory is known as shrinkage. To keep track of the precise quantity of inventory that a merchant should have on hand, book inventory uses the dollar value.
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