The Journal Entry to Record the Purchase of Inventory on Account

question 29

Multiple Choice

The journal entry to record the purchase of inventory on account is:

• A)Debit inventory, credit accounts payable.
• B)Debit accounts payable, credit inventory.
• C)Debit inventory, credit cash.
• D)Debit accounts payable, credit cash.

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Definitions:

Creative Ideas

Original and innovative thoughts or concepts that can potentially lead to new solutions, products, or art.

Review Process

A systematic examination or assessment of something with the possibility or intention of instituting change if necessary.

Experience of Flow

A mental state of deep focus and immersion in an activity, where time seems to pass unnoticed, and performance is at its peak.

External Consequences

Outcomes or repercussions of actions that affect parties outside the individual or entity responsible for the actions.