The Business Completes a Purchase Order for the Purchase of More

question 23

Multiple Choice

The business completes a purchase order for the purchase of more inventory at a cost of $1500.The immediate effect on the accounting equation is to:

• A) increase asset inventory by $1500 and decrease the asset cash by $1500.
• B) decrease the asset cash by $1500 and increase expenses by $1500.
• C) increase liabilities by $1500 and increase asset inventory by $1500.
• D) no effect as this is not recognised as a business transaction until the inventory is received.

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Definitions:

Ambient Storage

Refers to the storage condition that does not require any controlled temperature or humidity conditions, allowing materials to be stored at room temperature.

Delayed Retrieval

The process where recalling information becomes more challenging after a period of time has passed since the initial learning or exposure.

Short-term Memory

A component of memory where small amounts of information can be stored for a short period.

Sensory Storage

A type of memory storage that temporarily retains impressions of sensory information after the original stimuli have ended.