A Company Uses the Periodic Inventory Method

question 92

Multiple Choice

A company uses the periodic 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:

Advice And Counsel

The process of offering guidance, recommendations, or professional opinion to aid decision-making.

Financial Gain

The increase in money or assets, resulting from investment or business activities.

Employee Success

Refers to the achievement of career objectives, job satisfaction, and professional growth experienced by employees within an organization.

Policy Revisions

The process of reviewing, updating, and making changes to existing policies to reflect new information, standards, or goals.