Materials Purchased on Account During the Month Totaled $190,000

question 76

Multiple Choice

Materials purchased on account during the month totaled $190,000.Materials requisitioned and placed in production totaled $165,000.The journal entry to record the material purchase on account is

• A) Materials 165,000
• Accounts Payable 165,000
• B) Materials 190,000
• Accounts Payable 190,000
• C) Materials 190,000
• Cash 190,000
• D) Accounts Payable 190,000
• Materials 190,000

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Definitions:

Consolidated Net Income

Consolidated net income is the combined net income of a parent company and its subsidiaries, after intercompany transactions have been eliminated, presenting a comprehensive net income figure for the entire corporate group.

Subsidiary's Equipment

Assets like machinery and tools owned by a subsidiary, which is a company controlled by another parent company.

Consolidation

The process of combining the financial statements of a parent company with those of its subsidiaries, presenting the financial results as if the group of companies was a single entity.

Long-Term Debt

Borrowings and other financial obligations that are due for repayment beyond the next 12 months, usually including bonds, loans, and lease obligations.