The Journal Entry to Transfer the Beginning Inventory to Cost

question 113

Multiple Choice

The journal entry to transfer the beginning inventory to cost of goods sold under the periodic inventory system is :

• A) debit Purchases and credit Cost of Goods Sold.
• B) debit Purchases and credit Inventory.
• C) debit Inventory and credit Cost of Goods Sold.
• D) debit Cost of Goods Sold and credit Inventory.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing to purchase at different prices.

Marginal Revenue Curve

A graphical representation showing how additional sale of one more unit of a good or service affects the total revenue.

New Firms

Businesses that have been recently established, entering the market to offer goods or services.

Existing Firms

Businesses that are currently operational and have been established in the market for a period of time.