Which of the Following Accounts Would Most Likely Be Debited

question 114

Multiple Choice

Which of the following accounts would most likely be debited in the replenishment of petty cash?

• A) Cash
• B) Petty Cash
• C) Postage Expense
• D) Withdrawals

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Definitions:

Merchandise Inventory

Goods and products that a business holds in stock with the intent of selling them to customers.

FIFO

First-In, First-Out, an inventory valuation method where the first items placed in inventory are the first sold.

LIFO

An inventory valuation approach called Last In, First Out dictates that the newest items in inventory are the first to be accounted for as sold or used.

Cost of Goods Sold

Cost of Goods Sold represents the direct costs attributable to the production of the goods sold by a company, including material, labor, and overhead costs.