The Following Journal Entry Was Included in the Accounting Records

question 75

Multiple Choice

The following journal entry was included in the accounting records of Spica, Inc. Based on this information, it is likely that Spica:

• A) purchased inventory for cash.
• B) paid for inventory purchased on credit, and took advantage of a 1% purchase discount.
• C) sold inventory for cash.
• D) collected cash for inventory sold on credit, and recognized a 1% sales discount.

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Definitions:

Extravert

A person who is outgoing and thrives in social situations, typically characterized by high levels of sociability and enthusiasm.

Critical Realist

A philosophical stance positing that reality exists independently of human thoughts and beliefs, but our understanding of it is always filtered through our social and personal lenses.

Constructivist

Pertaining to the theory that individuals construct their understanding and knowledge of the world through experiences and reflecting on those experiences.

Empiricist

A person who emphasizes the role of experience and evidence, especially sensory perception, in the formation of ideas, over the notion of innate ideas or traditions.