A Firm Uses the Perpetual Inventory Method

question 4

Multiple Choice

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

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Definitions:

Clock Speed

The rate at which timing signals are sent to motherboard components (normally measured in MHz).

Single-Threaded Task

A single-threaded task is executed by a computer processor using a single sequence of instructions, meaning tasks are completed one at a time.

IPS

In-Plane Switching, a technology for LCD displays that offers wider viewing angles and better color accuracy, or Intrusion Prevention System, designed to detect and prevent network breaches.