Which Transaction Is Used to Recognize the Acquisition of Raw

question 41

Multiple Choice

Which transaction is used to recognize the acquisition of raw materials on account?

• A)debit to Accounts Payable and credit to Raw Materials Inventory
• B)debit to Raw Materials Inventory and credit to Accounts Payable
• C)debit to Work in Process Inventory and credit to Accounts Payable
• D)debit to Manufacturing Overhead, debit to Raw Materials Inventory, and credit to Accounts Payable

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Definitions:

Stockholders' Equity

The residual interest in the assets of an entity after deducting its liabilities, representing the ownership interest of the shareholders.

Fees Earned

Income earned through the delivery of services.

Wages Expense

An account representing the total cost of labor paid to employees, typically recorded over a specific accounting period.

Dividends

Payments made by a corporation to its shareholder members from the company's earnings.