The Journal Entry to Record the Purchase of Inventory on Account

question 29

Multiple Choice

The journal entry to record the purchase of inventory on account is:

• A)Debit inventory, credit accounts payable.
• B)Debit accounts payable, credit inventory.
• C)Debit inventory, credit cash.
• D)Debit accounts payable, credit cash.

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Definitions:

Information Processing Style

The mental approach or strategy an individual uses to collect, interpret, and understand information.

Intuitive

Characterized by the ability to understand or know something immediately based on instinctive feelings rather than conscious reasoning.

Thinking

The process of considering or reasoning about something.

Decision Trap

A situation in decision-making where biases, poor information, or pressure leads to a significant or systematic error.