Which Statement Is Not True About Inventory Linked Accounts -

question 6

Multiple Choice

Which statement is not true about inventory linked accounts -

• A) accounts cannot be changed when recording an inventory purchase
• B) accounts cannot be changed in adjustments journal entries
• C) accounts can be changed when recording a sale of inventory
• D) the main way to change the linked asset is to edit the ledger record

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Definitions:

Administrative Expense

Costs associated with the general administration of a business, such as salaries of executive officers, legal fees, and office supplies.

Investing Activities

Activities related to buying and selling long-term assets and various investments, which appear in a firm's statement of cash flows.

Comparative Balance Sheet

A financial statement that presents the financial position of a company at two or more different points in time, allowing for trend analysis.

Financing Activities

Transactions related to raising funds or repaying investors, such as issuing debt or equity, or repaying loans.