A Firm Uses the Periodic Inventory Method

question 17

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

Environment

The surrounding conditions, influences, or forces which affect the survival, development, and evolution of organisms or communities.

Photosystem

A complex of proteins and pigments in plants and algae that absorbs light energy and converts it into chemical energy during photosynthesis.

Chlorophyll

A green pigment found in the chloroplasts of plants, algae, and some bacteria, essential for photosynthesis as it absorbs light energy to convert carbon dioxide and water into glucose.

Mitochondrion

An organelle found in large numbers in most cells, in which the biochemical processes of respiration and energy production occur. It has a double membrane, the inner layer being folded inward to form layers (cristae).