When Purchases of Merchandise Are Made on Account with a Perpetual

question 245

Multiple Choice

When purchases of merchandise are made on account with a perpetual inventory system, the transaction is recorded with which entry?

• A) debit Accounts Payable; credit Inventory
• B) debit Inventory; credit Accounts Payable
• C) debit Inventory; credit Cash Discounts
• D) debit Inventory; credit Purchases

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Definitions:

Prosumer

A portmanteau of producer and consumer, indicating individuals who produce some of the goods and services entering their consumption.

Consumer

An individual who purchases goods and services for personal use from the available offerings in the market.

Deterritorialization

A concept in socio-cultural studies that refers to the weakening of the ties between culture and geographical location, often as a result of globalization.

Machinic Assemblage

A concept from Deleuze and Guattari referring to a complex arrangement of interconnected entities or machines, both literal and metaphorical, that produce desire or social order.