A Company That Uses the Perpetual Inventory Method Purchases Inventory

question 129

Multiple Choice

A company that uses the perpetual inventory method purchases inventory of $1,000 on account with terms of 2/10,n/30.Which of the following entries would be made to record the payment if it is made within 10 days?

• A) $1,000 debit to Accounts payable and a $1,000 credit to Cash
• B) $1,000 debit to Accounts payable, a $20 credit to Inventory and a $980 credit to Cash
• C) $20 debit to Inventory, a $1,000 debit to Accounts payable and a $1,020 credit to Cash
• D) $980 debit to Accounts payable, a $20 debit to Inventory and a $1,000 credit to Cash

Identify the characteristics and outcomes of specific psychosexual stages (oral, anal, phallic, latency, genital).

Recognize Freud's defense mechanisms and their role in personality development.

Comprehend the fixation concept and its implications for personality.

Describe the impact of early childhood experiences on adult personality according to Freudian theory.

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Definitions:

Issue Price

The price at which a company's shares or bonds are made available for sale when they are first issued to the public.

Book Value

The net value of a company's assets minus its liabilities, indicating the total value of the company’s equity as recorded in the financial statements.

Effective-interest Method

An accounting practice for amortizing the discount or premium on bonds or loans in a way that reflects a constant interest rate over the period.

Book Value

The net value of a company's assets minus its liabilities and intangible assets, often used to assess the company's worth.