The Entry to Record the Purchase of Direct Materials on Account

question 112

Multiple Choice

The entry to record the purchase of direct materials on account would include a ________.

• A) debit to the Raw Materials Inventory account
• B) debit to the Work-in-Process Inventory account
• C) credit to the Work-in-Process Inventory account
• D) credit to the Raw Materials Inventory account

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Definitions:

Common Stock

A type of stock where the stockholders receive dividends only when the board of directors elects to issue dividends.

Dividends Totaling

The sum of dividend payments received by shareholders within a specific period.

Net Proceeds

The total amount of money received from a sale or transaction, after all expenses and costs have been subtracted.

2% Commission

A fee paid to a salesperson, broker, or agent, equivalent to 2% of the sales amount or transaction value.