In a Periodic Inventory System, the Entry to Record the Taking

question 32

Multiple Choice

In a periodic inventory system, the entry to record the taking of a cash discount for the purchase of merchandise would include a:

• A)credit to Purchase Discounts
• B)credit to Inventory
• C)debit to Purchase Discounts
• D)credit to Purchase Returns and Allowances.

---

Definitions:

Regression Equation

A mathematical formula that describes the relationship between one dependent variable and one or more independent variables.

Predictor Variables

Variables used in statistical models that are believed to influence or predict the outcome.

Regression Equation

A formula that represents the relationship between dependent and independent variables in a regression model.

Unit Increase

A term used to describe a single step increase in the value of an independent variable and its effect on the dependent variable in a model.