If a Company,using a Perpetual Inventory System,purchases Inventory on Account,and

question 104

Multiple Choice

If a company,using a perpetual inventory system,purchases inventory on account,and later returns $200 of goods to the vendor,what entry would be made to record the return of goods to the vendor?

• A) $200 debit to Purchases and a $200 credit to Accounts payable
• B) $200 debit to Accounts payable and a $200 credit to Inventory
• C) $200 debit to Inventory and a $200 credit to Accounts payable
• D) $200 debit to Accounts payable and a $200 credit to Purchases

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Definitions:

Cash Operating Costs

Direct expenses incurred during regular operations, such as manufacturing costs, labor, and raw materials, excluding non-cash costs like depreciation.

Automating

involves the use of systems and technology to perform tasks with minimal human intervention.

Internal Rate Of Return

A financial metric used to evaluate the profitability of an investment, calculated as the discount rate that makes the net present value (NPV) of all cash flows from the investment equal to zero.

Discount Factor(s)

A multiplier for determining the present value of future cash flows or other investments, reflecting the time value of money.