which-of-the-following-is-not-a-reason-for-the-physical-inventory-count-to-differ-from-what-is-recog

Question

Which of the following is not a reason for the physical inventory count to differ from what is recognized on the company’s books?
A. mismanagement
B. shrinkage
C. damage
D. sale of services to customers

Puneet Prajapati · Accepted Answer

Okay, So we are going to understand the meaning, Love inventively followed by that people in this time. Okay. What are the suspects allergic to regarding often so simply first to Roma TV and in different forms. Good. Then who said the provokes through their customs? Okay, so what isn&#x27;t mentally? Okay, so we have alternative name for inventory on so you can track it down. It is stock. Okay, so it took us to the drama Gideon in different forms. And what other different forms? They&#x27;re different forms are first full aroma. TV in Roma didn&#x27;t like which is not processed yet. Okay. Just received from the supplier working group race. But forget progress means Sammy possessed. Okay, Neither finished, Good, not promoted. It is at intermediate stage and finished worse. Okay, so these are V raw material handling identity in different forms to sell products to their customers. Know what happens then? Let us uphold. There is mystery business world, and it is understood C was the supplier. So Mr C supplies songbirds. Okay, supply silvers. Let&#x27;s see 1000 units. But what happened by eight started putting 2000 units. 50 units got misplaced. Okay, 15 years work lost. Okay. And 15 minutes. Okay. What? Snatched by Atif. Okay. No. What happens by transferring the 1000 units to Mr A 50 units cost about misplaced. Okay, The transporter does not know that they&#x27;re that they&#x27;re These units were gone. These also about the same status off the 2nd 50 years and last of the owners are snatched. Okay. So as a basic common sense, also, you can understand that Mr A will not record these units in there boots. Right? Because these units have not been deceived, Mr. Okay, so they this loss will be born by Mr C. Okay, so Mr Abe will not be liable. OK? Will not be liable to pay as well will not be able to record these units in their books as he has not received otherwise. Whatever be the reason, Mr A Wilby able to record 1000 years. Okay, if the reason, boss, or if the reason would have been different from these these deviants. Okay, if the reasons would have been different from these reasons which I have stated in three points court misplaced or lost stashed. Okay, then, Mr It will be The car will be able to the court. 1000 minutes in their books. Other vice. It will not be the case. Okay, so in the current case, that matches that which is not the reason. So that matches with the choice D that if Lexus opposed the sale of should be sold tractors, not that prepared reason. Okay, So Choice D&#x27;s the correct answer. However, you conveyed what happened so far, that&#x27;s all for this solution. Thank you.

Puneet Prajapati · Answer

I understand being meaning off on welcomes. Okay? Sort of. But that people understand There what is the actual implication or P State comes. Okay, so just the type of account. Okay? Which will have opposing effect on the previously gender. A couple dependence is okay. Although we have returned our technical definition here now, I ve vill understand this stipulation through an example. So let&#x27;s suppose there is the Mr B. Okay, who isn&#x27;t dealing off? Let&#x27;s video games. Okay, So, Mr Reyes dealing in business off Williams and Mr C is a trustworthy customer off Mr B. No. What happens, Mr. ISS Cell, So I didn&#x27;t read begins to Mr C. Okay, so after selling video games Mr A has recorded Let&#x27;s it $1000. As is revenue. Now what happens after receiving the video games for Mr A Mr Sea verifies that the video games that mark I find it really gives. OK, So what happens? Mr Cedar? Don&#x27;s back. Mr. C returns back those video games too. Mr. B, seeing that that the games that fight occurred So the actual work which which Waas which were done? No mystery boss. 500 voters. Okay, so these are there? Does Sailor does know what happened? What is what is the actual implication off contract count? Is that that then Mr is sold? We do games must to see there is never a balance off $1000. It means it visited the comfortable from Mr C. Okay, the governable from Mr C. But whatever, Mr. C return games worth off $500 to Mr A. Okay, so that the next recoverable about from Mr C as a customer now will be $500 only. Okay, so it is a sailor dunce. Okay, this is a sailor turns off $500. Now these account so sales this town will be off contra. They&#x27;ve a new accounts. Like, if it really was down on the Children renewed. That has been previously gender. Okay, so now that matches with our current solution matches with joy, See that this is this found. Okay, so that&#x27;s so you can write down what I everything so far, along with the example for everything. Okay. However, Jean saw Joy sees the correct answer. That&#x27;s all for the solution.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the current problem. Okay? So to begin with, we will start with the, you know, counting the basic accounting question. And then we will move to our main solution. Okay, so it&#x27;s a said minus lovely piece equals store equity. Okay, so let&#x27;s say to understand this basic accounting question. First of all, we need to understand that. What does the counting the question say&#x27;s Okay, so let&#x27;s suppose you are Oh, you are dealing in the business off selling real games. Okay. By selling the video game to the customers, you have generated revenue off housing. $1000. Okay, $1000. Bye bye. I every $1000 under the asset, I will tell you. So let&#x27;s suppose that you have sold the video games to your customers, but you are able to receive them out. Attn. This part okay, your customer is likely to pay you off. Let&#x27;s after 30 days of Peter. Okay, So whatever the amount that is receivable active at the future pointing, dying, that amount is known as a sec. Okay, So even if you have sold the video games to the customers, but still you have not been paid that amount is irrecoverable from the customer, so that will be considered as your I said. Okay, let&#x27;s suppose in processing the material of video games, do you need to purchase the material from someone else like your supplier so that you can persist the video games in tow? Saleable product. Okay, so for that you have imported someone from the outside of the country, okay? And you have important material off $500. You have important material of $500 by I have returned $500.50 head liabilities because a liability is an amount people for the for the benefits that has bean avail. Okay, Lake the or in simple terms, we can say liabilities and is an amount which is people like the future point at the future at a future point in later. Okay, Now, what is the equal devotion? $500 housing minus. I wondered because 500. What is this fight? One day? You can completely, you know, interpret this through the question that so they could be thrown business after being off all the ladies. Okay, so let&#x27;s support if you have $1000 deficits. Do you have Thompson, owners of physics. How that are They&#x27;re recoverable from the customers, but no. What happened? You have also liabilities off 502. You have to obey them. So after netting the recoverable and table amounts, you have $500 of equity backed that. It&#x27;s your personal amount that you will take up with this amount. A killer who, because that is a lian free amount you in free means nobody has the right to, you know, detached that amount from yourself. Because it is that take away from the business after being off all the liabilities. Okay, so we have understood the basic part of the question. Now, let&#x27;s move, lover. Basic salute. Those main solution. Okay, so in the portion we have been asked, that vote will be the effect on the both sides of the equation if us is hookers. Okay. That is to a very simple part. I mean, you have. Okay, he&#x27;s the potion Say&#x27;s that the sale even has been aboard. So let&#x27;s say it is a guy I see. Okay. Now, if there is a cash sale, okay, we have initial. I think we&#x27;re not supposed to write it here. Okay, let&#x27;s first, you know, just get the initial initial initial Ramones like they are in tow. You know, business offices selling. You do games to other customers. So we have initial amounts. No more confused. I&#x27;m just taking them all from this one. This one in this way. $1000 opposites. They&#x27;re recoverable. $500 off liabilities. 500 on herself, Equity. Okay, Now you have understood the basic concept of accounting. Question? No, let&#x27;s move to the solution. Okay, let&#x27;s suppose we have a cash sale of 500. Okay? No, if I will sell the video game, and against that, I will receive cash. What will happen? My sex. I will also increase because the asset also include the cash available with the business entity. Let&#x27;s suppose let&#x27;s suppose we have a company, Okay, but the s excited will also include the cash available in the business like we used to keep cash, you know, hard cash in the cash drawers. Or we can say our bollards are some some other type of stuff in which we can, you know, keep outta cash. So they will be $500 sale if if If we have you know, made a sale of $500 in cash than assert side of Greece. They will be more liability by there. So because we have because for for making this sale, we have incurred no type off liability. Okay? We have because I&#x27;m just supposing that I&#x27;m just making this is an example to make the solution here. Okay. So as we will sell the video game on cash on a cash basis So we will realize that cash around off 500 which will be included in the outside as the cash balance. Okay. No one the opposing side of the question. What will happen? See the motive for the businesses to own profit and what is actually profit? Nothing in the profit is simple. Everyone knows this. Okay, See, it&#x27;s minus expenses. So if vehicle in Greece ever since, they will be increasing profits off, if you will in Greece, other expenses, they leave degrees in Crawford&#x27;s. Okay, So, like flies, if there is increase in sales increasing states. So the secret about that will be your takeaway. After paying off all the liabilities be greater by that. So because you have made sales more than before. Okay, like you have made extra sense or you are making revenues, so your take of it will be greater. It is very, very office. Right. So you&#x27;re 500 will be. I do. Do you? In your big of it. Okay. So words the neck current. What is the net effect of the tradition? It&#x27;s this one becomes 15 under. This will be a sickness 500 and this will be $1000. Okay, so what is the net effect? What is the net effect on the both sides of the question? This this we have as the initial level. This we have after considering the transaction. So you can see there is a 15 and $500 increase. There is also $500 increase. So the correct solution we can conclude for the problem. 27 is e. Okay, so the correct choice. Okay. So you can derive the deny dissolution by forming the, you know, basic complication. Because without informing the question, you will not. You will not reach anybody. Anything. Okay. So tax are for the current solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand that how many times off but gazing mediums we have, like So how many mediums weekend initiate our chasing down their chins off its okay, All right. But it is not on either arm hits and unite both goods and services. Okay, so first up on begin. But she is any type off religion services on a cash basis, then on this is okay. So in terms off gas bases, there is a chimney production that, first of all, they will be delivery aubergines offices against Yes. Okay. Against cash. So that is what we have. Like, this is purchasing media ve vill or business. Incredible. Deliver emergency services to the customer and the customer will pay cash against the ability. Okay. I don&#x27;t think this is what happens. Then there is a delivery of goods and services. Okay. That is delivery of goods and services, Turkistan, the customer stays. I will make a mental. You&#x27;re depending that okay? Like it is also known expertise on traffic. Okay, But what happens when customer find something defective in the goods or services? Because the mother turns the Gordon&#x27;s up in this study supplier before making the payment know what happens if, if the actual purchase has been made has been made on it. Okay. A If the customer also turns the defective goods to the supplier, then what happened to accounts empty effected from those damages. Okay for partying most of all there decades ago. Okay. And 2nd 1 is sees you doing and launches. Okay. Why did this about? Because the purchase or sale has been made on credit. So that is why we will have effect contact as they come. And we will have effect on sales returning about launches because account 40 translate chin into stepped off, return off. Good return off defective fortunes of his sister supplier rebuild. They will be effect on sales. Ritalin allowances. Okay. No, As the current solution to our question here, I didn&#x27;t be fired that Joyce D is correct. Okay, because that Joyce is containing who? Two important accounts that will be affected. Yes. The purchase will you meet don&#x27;t credit for so far, and that defective goods really be returned by customers for the suppliers. Okay, so you can write down. But I have returned so far, okay? For making for making the concept to get our choice to use the correct answer. Thank you.

Puneet Prajapati · Answer

Okay. So via going to understand the meaning off a cheese, However, most of us we No. What is the actual meaning of purchase? However, the very defined it. I think them some business front extorts. Okay, so it reverse to the activity. Oh, quieting the course and services for for that position. Oh, no. Romer easier. Okay. So however, what we actually know in in regard to the meaning of purchase, we have return it. Okay, But I will talk in different context also. Let&#x27;s suppose there is mystery who is a business owner. Okay? And it is Mr Be a supplier. No. What happens, Mr April Jesus from Mr B. Or we can also alternatively say like Mr B supplies. Let&#x27;s say, Are there any winners who was steady? Okay, but what happened? Out of those 100 winners, Mr B gives certain this found okay. Certainly scout on those units. Okay, certain allowances. Now what paper allowances? The real district. Discuss it in later problems. When we will face it, they devised problems, okay? No, it also happened then that Mr A found that out off these 100 units. Five units were defective. Okay, So mystery returned Those five units to us to be so that being old as it does Okay, what is it done? Okay. No vile computing. The actual amount of purchase. Okay, I&#x27;ll come with the actual amount of cheese. We will consider these three actors only we can save. I&#x27;ll confusing the next purges. Okay, we will consider these items. However, any other item didn&#x27;t or deep can see there. Okay, so after our pregnancy eating these items, they will be. But I have been Get over. I&#x27;m a governor. So that matches with ever joys be which is the actual element which is not considered in computing the next. Ok, so beginning entry beginning in my day is not considered even completing the purchase. So Choice B is the correct answer. Okay, that&#x27;s all for our solution.

Puneet Prajapati · Answer

So we are going to understand the meaning off. Invent new system. Okay, so by back, we&#x27;ve been in this thing. It&#x27;s a little respect, so So Okay, so it is the system. Which in neighbours An entity record what she is. Okay. Sales transactions, but she is in sale transactions. No kidding? Given the financial. Okay, so an inmate base system enables an entity. Okay? It enables an entity who regard, but she&#x27;s I see. Okay, transaction opening within the financial yet. Okay, So there are many elections which are occurred in an entity. Didn&#x27;t give an inch area. So anyway, every system allows to record those convictions. Okay. However, there is ah, system. Or we can say that April systems. Okay, beautiful. The Arctic in when do system. So as its name suggests, it allows table Inspection Act desired indo us. So as the name off in when two systems suggests pretty already. Okay, So it allows an entity who conduct soup able inspection. Okay, So people inspection are designed to know what is the model of desired influence. It would be it could be Legally you contracted overtime writing okay for a future girlfriends monthly. So these are there Do that sort Designing parents with data on so however daily will be, you know, very, very time consuming. Okay, so daily bigly monthly are fairly Okay, so on. Okay, so it it allows the entity to conduct some people inspection at the increments. Okay, so that matches with So I would put in solution matches with choice E. Okay, so it is the correct answer. Joyce A is the correct answer. However, you can write for everything so far. What a difference. So choice is the correct answer.

Problem

Which of the following is not included when compu…

Problem 7 Easy Difficulty

Which of the following is not a reason for the physical inventory count to differ from what is recognized on the company’s books?
A. mismanagement
B. shrinkage
C. damage
D. sale of services to customers

Answer

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Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting