When Purchases of Merchandise Are Made on Account with a Perpetual

question 47

Multiple Choice

When purchases of merchandise are made on account with a perpetual inventory system, the transaction is recorded with which entry?

• A) debit Accounts Payable; credit Merchandise Inventory
• B) debit Merchandise Inventory; credit Accounts Payable
• C) debit Merchandise Inventory; credit Cash Discounts
• D) debit Merchandise Inventory; credit Purchases

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Definitions:

True

Accurate or consistent with fact or reality; not false.

Hasty Generalization

A logical fallacy in which a broad conclusion is drawn from a small set of evidence or examples.

Generalizations

A process in reasoning where broader conclusions are drawn from specific cases or examples.

Stereotyping

The act of ascribing generalized and often inaccurate or oversimplified characteristics to members of a group.