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:

Displaced Aggression

Aggression directed to a target other than the source of one’s frustration.

Natural Selection

A process in biology where organisms better adapted to their environment tend to survive and produce more offspring, leading to evolutionary changes.

Valued Relationship

A connection between individuals or entities regarded highly for its significance or importance.

Examining

The act of looking at something closely and carefully in order to learn more about it, assess its condition, or determine its significance.