A Company Uses the Perpetual Inventory System and Recorded the Following

question 45

Multiple Choice

A company uses the perpetual inventory system and recorded the following entry: $\begin{array}{|l|r|r|}\hline \text { Accounts Payable } & 2,500 & \\\hline \text { Merchandise Inventory } & & 50 \\\hline \text { Cash } & & 2,450 \\\hline\end{array}$ This entry reflects a:

• A) Purchase,
• B) Return,
• C) Sale,
• D) Payment of the account payable and recognition of a cash discount taken,
• E) Purchase and recognition of a cash discount taken,

---

Definitions:

Smiling

The act of expressing happiness, pleasure, or affection by curving the mouth upwards.

Engage

To participate or become involved in an activity.

Identification

The psychological process by which an individual aligns themselves with the attitudes, beliefs, or behaviors of another person or group.

Precausal Reasoning

Precausal reasoning refers to a stage in child development where logic is not yet fully developed, leading to reasoning based on intuition or superficial connections rather than causal relationships.