The Entry to Record the Purchase of Materials on Account

question 57

Multiple Choice

The entry to record the purchase of materials on account using a job order costing system would include a:

• A) debit to materials inventory.
• B) debit to accounts payable.
• C) debit to work in process inventory.
• D) credit to materials inventory.

---

Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Operating Activities

Day-to-day actions and transactions related to running a business, such as selling products, paying wages, and purchasing inventory.

Net Income

The final financial gain of a business after removing all expenses, taxes, and costs from the gross income.

Financing Activities

Transactions and events whereby resources are obtained from, or repaid to, owners (equity financing) and creditors (debt financing).