Use the Following Information for Questions

question 9

Multiple Choice

Use the following information for questions.
Tehran Ltd.uses FIFO to cost its inventory.The following information is available for Tehran's inventory of product # 101:
-Assuming Tehran uses the perpetual inventory system, the entry to account for the March 1 purchase is

• A)debit Inventory and credit Accounts Payable, $875.
• B)debit Purchases and credit Accounts Payable, $875.
• C)debit Accounts Payable and credit Purchases, $875.
• D)debit Accounts Payable and credit Inventory, $875.

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Definitions:

Causal Relationships

Connections between two events where one event is understood to be a direct result of the other.

Generalization

A broad statement or an idea that applies to a group based on experiences with or observations of a smaller segment of the group.

Controlled Experiments

Experimental designs in which researchers manipulate variables under controlled conditions to determine cause and effect.

Correlation

A mutual relationship or connection between two or more things, where one does not necessarily cause the other.