Under a Perpetual Inventory System,which of the Following Entries Would

question 88

Multiple Choice

Under a perpetual inventory system,which of the following entries would record the purchase of merchandise on credit?

• A) Debit Inventory and credit Accounts Payable
• B) Credit Purchases and Debit Cost of Goods Sold
• C) Credit Sales and debit Accounts Receivable
• D) Debit Purchases and credit Accounts Payable

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Definitions:

Employee Section

A designated area within business management or payroll software where information and records related to employees are maintained.

Write Checks

The process of creating and issuing checks from an account to pay for goods or services.

Company's Earnings

Profits realized by a business over a specified period, often measured as net income or earnings per share.

Profit & Loss Statement

A financial report that summarizes revenues, costs, and expenses incurred during a specific period, showing the net profit or loss.