When Posting Column Totals in the Purchases Journal, a Credit

question 128

Multiple Choice

When posting column totals in the purchases journal, a credit should be posted to

• A) Merchandise Inventory
• B) Accounts Payable
• C) Sales Returns and Allowances
• D) Cash

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Definitions:

Prices In Resource Markets

The costs associated with purchasing inputs like labor, land, and capital in markets where they are traded.

Relative Scarcity

The condition where the availability of resources is limited compared to the unlimited wants and needs.

Demand For Resource

The desire and willingness of firms or individuals to acquire resources at various price levels.

Resource

Refers to assets or inputs used in the production of goods and services, such as time, money, or raw materials.