What Account Is Credited When Goods Are Sold

question 144

Multiple Choice

What account is credited when goods are sold?

• A)finished goods
• B)cost of goods sold
• C)accounts payable
• D)cash

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Definitions:

Funds

Financial resources that are allocated for a specific purpose, project, or investment.

Legal Entity

An organization that has legal rights and obligations, including the ability to enter into contracts and own property, separate from its individual members.

Corporation

A legal entity formed by a group of individuals to conduct business or other activities, recognized as separate from its owners with its own rights and liabilities.

Personal Liability

The legal responsibility of an individual to settle his or her debts and obligations, potentially using personal assets.