For Companies That Purchase Goods on Account, the Transaction Should

question 139

Multiple Choice

For companies that purchase goods on account, the transaction should _______.

• A)record purchases and accounts payable upon ordering of the goods
• B)record purchases and accounts payable upon the receipt of goods
• C)be input into the ledger by the auditor once it has been reviewed
• D)overstate equity until the goods are paid for

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Definitions:

Current Date

The present day according to a calendar, often used in documents or digital systems to represent the day on which an event occurs or a document is accessed or modified.

Left-aligned

Text or content that is aligned to the left margin or side of a page, creating a straight line on the left while the right side may be uneven.

Data Bars

A conditional formatting tool in spreadsheets that visually represents data in a cell with horizontal bars, aiding in quick data analysis.

Blue Fills

A graphic design or formatting feature where a shape, cell, or area is filled with a blue color.