Indicate Whether Each of the Following Statements Is True or False.(Assume

Short Answer

Indicate whether each of the following statements is true or false.(Assume a perpetual inventory system. )
_____ a)In a perpetual inventory system,an employee theft is discovered immediately.
_____ b)No adjusting entry is required for inventory losses under a perpetual inventory system.
_____ c)Inventory shrinkage is calculated as the difference between the beginning and ending balances in the merchandise inventory account.
_____ d)In a perpetual inventory system,adjustments for lost,damaged or stolen merchandise are recorded as expenses.
_____ e)The entry to record inventory losses due to employee theft or shoplifting has a negative effect on the statement of cash flows.