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?
Multiple Choice
Balance Sheet Income Statement Statement of Cash Flows
Assets = Liabilities + Equity
Cash + Inventory = Revenues − Expenditures = Net Income
NA $(700) NA $(700) NA $700 $(700) NA
Balance Sheet Income Statement Statement of Cash Flows
Assets = Liabilities + Equity
Cash + Inventory = Revenues − Expenditures = Net Income
NA $700 NA $700 $700 NA $700 NA
Balance Sheet Income Statement Statement of Cash Flows
Assets = Liabilities + Equity
Cash + Inventory = Revenues − Expenditures = Net Income
NA $(700) NA $(700) NA NA NA NA
Balance Sheet Income Statement Statement of Cash Flows
Assets = Liabilities + Equity
Cash + Inventory = Revenues − Expenditures = Net Income
NA $(700) NA $(700) NA $700 $(700) $(700) Operating