Using a Perpetual Inventory System, the Entry to Record the Purchase

question 28

Multiple Choice

Using a perpetual inventory system, the entry to record the purchase of merchandise on account involves a:

• A)debit to Inventory.
• B)debit to Accounts Payable.
• C)credit to Inventory.
• D)credit to Cash.

---

Definitions:

Acceptance

In contract law, acceptance refers to the agreement by the party to whom an offer has been made to the terms of the offer, resulting in a legally binding contract.

Mailbox Rule

A legal doctrine stating that an offer is considered accepted at the time the acceptance is sent via the mail or other delivery method.

Risk

In law and business, risk refers to the exposure to potential loss or damage arising from various factors like legal liabilities or financial transactions.

Offeror

An offeror is a person or party who presents a conditional proposal to enter into an agreement with someone, known as the offeree, which becomes legally enforceable if accepted by the offeree.