A Firm Uses the Periodic Inventory Method

question 11

Multiple Choice

A firm uses the periodic inventory method. Which of the following entries would be made to record a purchase of inventory on credit?

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

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Definitions:

Standard Deviation

A calculation that determines the amount of fluctuation or spread in a set of numbers.

Sampling Distribution

The probability distribution of a statistic (e.g., the mean) obtained from a large number of samples drawn from a specific population.

Standard Deviation

A measure of the dispersion of a set of data from its mean, indicating how spread out the data points are.

Standard Deviation

A statistic that quantifies the amount of variation or dispersion of a set of data values.