If Goods Are Purchased on Credit for Resale,the Accountant

question 61

Multiple Choice

If goods are purchased on credit for resale,the accountant:

• A) debits inventory and credits debtors
• B) debits creditors and credits inventory
• C) debits inventory and credits owners' equity
• D) debits inventory and credits creditors.

Comprehend the climatic influences of ocean currents on temperate rainforests.

Recognize the importance of biodiversity in mountain biomes.

Describe the adaptations of epiphytes and their ecological roles.

Understand the formation of precipitation through atmospheric processes.

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Definitions:

Net Operating Income

The profit of a business after operating expenses are subtracted from gross income.

Break-even Point

The production level or sales volume at which total revenues equal total expenses, resulting in no net profit or loss.

Break-even Point

The level of production or sales at which the revenues of a business equal its costs, resulting in neither profit nor loss.

Total Contribution Margin

This refers to the total amount of revenue left over after deducting all variable costs, indicating the total contribution towards covering fixed costs and generating profit.