A Firm Uses the Periodic Inventory Method

question 68

Multiple Choice

A firm uses the periodic inventory method. Which of the following entries would be made to record a $1 100 purchase of inventory on credit, including GST?

• A)The accounting entry would be a $1 100 debit to Accounts payable and a $1 100 credit to Purchases.
• B)The accounting entry would be a $1 000 debit to Purchases, a $100 debit to GST Clearing and a $1 100 credit to Accounts payable.
• C)The accounting entry would be a $1 000 debit to Inventory, a $100 debit to GST Clearing and a $1 100 credit to Accounts payable.
• D)The accounting entry would be a $1 100 debit to Accounts payable, a $1 000 credit to Inventory, and a $100 credit to GST Clearing.

---

Definitions:

Message Characteristic

Features or attributes of a message that affect how it is perceived and understood by the audience.

Audience Characteristic

Traits or features that define a particular group of viewers, listeners, or readers of specific media or content.

Message Component

Elements or parts of a message that contribute to its overall meaning and effectiveness in communication, such as content, tone, and context.

Linguistic Style

The distinct manner or pattern of speech and language usage that characterizes an individual, group, or context.