Tangent Corporation Makes a $1,200 Purchase of Merchandise Inventory for Cash

question 86

Multiple Choice

Tangent Corporation makes a $1,200 purchase of merchandise inventory for cash. This transaction will be recorded in the:

• A)cash payments journal.
• B)general journal.
• C)cash receipts journal.
• D)purchase journal.

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Definitions:

Market Segmentation Theory

A theory of the shape of the yield curve. The debt market is segmented by term, and each segment is independent of the others. Hence, the curve slopes up or down depending on supply and demand conditions in the various market segments.

Liquidity Preference Theory

A theory suggesting that people prefer to hold their wealth in liquid form for convenience and as a precaution against uncertainty, affecting interest rates.

Yield Curve

A graphical representation of interest rates on debt for a range of maturities, often used as an indicator of economic expectations and interest rate trends.

Normal

Typically refers to something that conforms to a standard or common pattern; in statistics, a distribution that is symmetrically clustered around its mean.