When a Store Chooses to Use an Item from Its

question 33

Multiple Choice

When a store chooses to use an item from its inventory in the store -

• A) record a sales invoice because the store is selling the item to itself
• B) record a purchase invoice because the store is buying the item from itself
• C) record an general journal entry for the transfer of inventory stock
• D) none of the above

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Definitions:

Accounts Payable Period

The average number of days it takes for a business to pay its suppliers.

Receipt Of Inventory

The process of receiving goods or materials into stock, typically recorded at the time of delivery, impacting both inventory levels and accounts payable.

Payment For It

This term refers to the act of disbursing money in exchange for goods or services.

Cash Receipts

The collection of money, either in the form of cash or checks, received by a business during its operations.