A Company Uses the Periodic Inventory Method

question 94

Multiple Choice

A company uses the periodic inventory method.Which of the following entries would be made to record a $1,200 purchase of inventory on account?

• A) The accounting entry would be a $1,200 debit to Purchases and a $1,200 credit to Accounts payable.
• B) The accounting entry would be a $1,200 debit to Accounts payable and a $1,200 credit to Purchases.
• C) The accounting entry would be a $1,200 debit to Inventory and a $1,200 credit to Accounts payable.
• D) The accounting entry would be a $1,200 debit to Accounts payable and a $1,200 credit to Inventory.

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Definitions:

Norms

Implicit rules and expectations that guide behavior of group members, helping to shape attitudes and actions within a social context.

Informal Rules

Unwritten guidelines or norms governing behavior within a group or organization, which can influence actions and decisions alongside formal regulations.

Volume

The degree of sound intensity or loudness, often measured in decibels.

Intonation

The variation of pitch in speaking, which can affect the meaning of words and sentences.