The Journal Entry to Record the Existence of a Loss $\begin{array}{cc}\text { Accrued Loss on Purchase Commitments } & \mathrm{XXX} \\\text { Loss on Purchase Commitments } & \mathrm{XXX}\end{array}$

question 109

Multiple Choice

The journal entry to record the existence of a loss on a non-cancellable fixed purchase contract is

• A)
• \(\begin{array}{cc}
• \text { Accrued Loss on Purchase Commitments } & \mathrm{XXX} \\
• \text { Loss on Purchase Commitments } & \mathrm{XXX}
• \end{array}\)
• B)
• Loss on Purchase Commitments \( \quad \mathrm{XXX} \)
• Accrued Loss on Purchase Commitments \( \quad \mathrm{XXX} \)
• C)
• \(\begin{array}{lr}
• \text { Loss on Purchase Commitments } & \text { XXX } \\
• \text { Accounts Payable } & \mathrm{XXX}
• \end{array}\)
• D)
• Loss on Purchase Commitments\(\quad\)\(\quad\) \( \quad \mathrm{XXX} \)
• Allowance to Reduce Inventory to Lower of Cost or Market\(\quad\) XXX

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Definitions:

Salary

is a fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.

ERG Theory

Theory that suggests that people are motivated by three categories of needs arranged in the form of a hierarchy.

Growth Needs

Psychological needs that drive individuals to pursue new challenges and personal development once basic needs are fulfilled.

Two-Factor Theory

The impact of motivational influences on job satisfaction.