acct209 at Texas A&M

4. Loss On Inventory

in Chapters 5 & 6 (Problem 4 of 9)

Determine the effect on a company’s Assets and Net Income from the following transaction: a loss on inventory is recorded as an adjusting entry.

Assets Net Income
A Decreased Decreased
B Decreased No effect
C Increased No effect
D Increased Increased
E None of the above
Watch Solution (2:01) Hide Solution Reveal Solution

The Rest Of The Practice Problems

Click Here to View All Chapters 5 & 6 Problems at Once View
1 Consignment Inventory Easy
2 FOB Destination Easy
3 Inventory Set Aside Easy
4 Loss On Inventory
You are here. 		Easy
5 FOB Shipping Moderate
6 FOB Shipping Moderate
7 Inventory Costing Moderate
8 Calculating Operating Income Hard
9 The Effect of Inventory Errors Hard
← Chapter 4

Chapters 5 & 6 Videos

1 The Multistep Income Statement 12:44
2 Gross Profit vs Net Profit 6:15
3 Profit Margin 3:22
4 Net Sales 10:03
5 COGS and Inventory 2:57
6 Perpetual vs Periodic 7:10
7 FOB Shipping? 8:51
8 Transportation In 8:41
9 COGS 6:18
10 Drawbacks to Periodic 6:07
11 Specific Identification 2:17
12 Weighted Average 4:21
13 FIFO and LIFO 20:17
14 Estimating with Gross Profit 7:23
Chapter 8 →