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:

Control Condition

In an experiment, a comparison condition in which participants are not exposed to the same treatment as in the experimental condition.

Independent Variable

The variable in an experiment that is manipulated by the researcher to examine its impact on the dependent variable.

Experimental Condition

In research, it refers to the specific environment or set of variables that participants are exposed to, allowing scientists to study the effects of these variables on behavior or performance.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.