The Usual Source of Journal Entries to Record the Purchase

question 41

Multiple Choice

The usual source of journal entries to record the purchase of inventory in the general ledger is

• A)Sales invoices updated with cost data from the inventory records department.
• B)Purchase invoices updated with cost data from the inventory records department.
• C)Bid quotes updated with cost data from the inventory records department.
• D)Receiving reports updated with cost data from the accounts payable department.

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Definitions:

General Incorporation Law

Legal statutes that facilitate the establishment of corporations by providing standardized procedures and requirements for incorporation.

For-Profit Corporations

Businesses that are established to generate profit for their owners, with revenues exceeding costs.

Laws

The system of rules created and enforced through social or governmental institutions to regulate behavior.

Common Law

A body of legal principles that derives from court decisions over time rather than from statutes or constitutions, emphasizing precedent in judicial decisions.