A Company Uses the Perpetual Inventory Method

question 62

Multiple Choice

A company uses the perpetual inventory method.Which of the following entries would be made to record a purchase of inventory on account?

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

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Definitions:

Employment

The condition of having paid work or being engaged in a professional activity for remuneration.

Equal Employment Opportunity

Policies and regulations that ensure all individuals have an equal chance for employment, without discrimination.

Personnel Department

A division within an organization focused on managing employee-related tasks, such as hiring, training, and addressing workplace issues.

External Concern

Issues or factors outside an organization that affect its operations or decisions.