When Merchandise Is Acquired on Account and the Perpetual System

question 79

Multiple Choice

When merchandise is acquired on account and the perpetual system of inventory is used, the journal entry for the purchase would include

• A) debiting Purchases and crediting Accounts Payable.
• B) debiting Accounts Payable and crediting Merchandise Inventory.
• C) debiting Merchandise Inventory and crediting Accounts Payable.
• D) debiting Accounts Payable and crediting Purchases.

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Definitions:

Electrical Messages

Signals or impulses transmitted by neurons in the nervous system, enabling communication between different parts of the body.

Nervous

Pertaining to the nerves or experiencing feelings of anxiety or apprehension.

Prefix

A morpheme added to the beginning of a word to modify its meaning, often used in linguistics and the formation of new words.

Suffix

A letter or group of letters added at the end of a word to modify its meaning or change it into a different word class.