Post Utme Bsu 2023 Accounting Question 11

Practice objective / multiple choice question 11 from the 2023 Post Utme Bsu Accounting examination.

Post Utme Bsu 2023 Accounting Objective / Multiple Choice
Question 11 POST_UTME_BSU • 2023 • ACCOUNTING • objective

A company uses the perpetual inventory system. At the end of the year, it discovers that the physical count of inventory is 10% less than the book value. What is the appropriate accounting treatment?

Answer Options

A. Write off the difference as a loss.
B. Adjust the inventory account to reflect the physical count.
C. Increase the cost of goods sold by the difference.
Correct Answer D. Decrease the inventory account by the difference.
Correct Answer
D
Correct Option:
Decrease the inventory account by the difference.

About This Question

This is Post Utme Bsu 2023 Accounting Question 11. It is one of the objective questions from the 2023 Post Utme Bsu Accounting examination.

View More Post Utme Bsu 2023 Accounting Questions More Post Utme Bsu Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support