Inventory shortages are debited to
a. Merchandise Inventory
b. Cost of Goods Sold
c. Inventory Short/Over
d. Sales
Question 2
The city's Capital Projects Fund had an excess of expenditures over revenues for the current year. Which of the following explanations for the excess is plausible?
a. The city financed a substantial portion of the project in the previous year.
b. The city financed a significant portion of the project by issuing long-term bonds during the year
c. The city financed a significant portion of the project from property taxes transferred from the General Fund.
d. All of the above are plausible explanations
