Multiple Choice
Ashton Company uses the perpetual inventory system.The company's inventory account had a $6,600 balance as of December 31,Year 1.A physical count of inventory shows only $5,900 of merchandise in stock at December 31,Year 1.How will the entry to recognize the missing inventory affect the company's financial statements?
A) Increase assets.
B) Increase expense.
C) Decrease cash flow from operating activities.
D) All of these answer choices are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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