Which of the Following Entries Records the Investment of Cash

question 79

Multiple Choice

Which of the following entries records the investment of cash by John,owner of a sole proprietorship?

• A)Debit John,Capital;credit Cash
• B)Debit Cash;credit Revenue
• C)Debit John,Withdrawals;credit Cash
• D)Debit Cash;credit John,Capital

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Definitions:

Cost of Goods Sold

Costs incurred directly from the production of goods a company offers for sale, covering material and labor expenses.

Work in Process Inventory

Goods partially completed during the manufacturing process, consisting of labor, raw materials, and overhead costs incurred to date.

Finished Goods Inventory

The collection of products that have been completed and are available for sale, yet remain unpurchased.

Operating Expenses

Costs that are necessary for the day-to-day functioning of a business, excluding direct material and direct labor costs.