What Is the Usual Source of Journal Entries to Record

question 2

Multiple Choice

What is the usual source of journal entries to record the purchase of inventory in the general ledger?

• A)Sales invoices updated with cost data from the inventory records department.
• B)Purchase invoices updated with cost data from the inventory records department.
• C)Bid quotes updated with cost data from the inventory records department.
• D)Receiving reports updated with cost data from the accounts payable department.

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Definitions:

General Equilibrium

The condition that exists when all markets in an economy are in simultaneous equilibrium.

Economic System

The organized way in which a country allocates resources and distributes goods and services in its society.

Criterion

A principle or standard by which something can be judged or decided.

Efficiency

The optimal allocation of resources to produce goods and services in a way that maximizes output with the least waste or cost.