Which of the Following Is an Example of a Purchased

question 51

Multiple Choice

Which of the following is an example of a purchased direct item for a manufacturing firm?

• A)​Parts and components.
• B)​Travel.
• C)​Office and janitorial supplies.
• D)​Advertising and media.
• E)​Personal computers.

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Definitions:

Debit Column

is a section in accounting records where increases in asset and expense accounts or decreases in liability, equity, and revenue accounts are entered.

Credit Column

The column in an accounting ledger where credit transactions are recorded, reflecting increases in liabilities, equity, or revenue, or decreases in assets or expenses.

Service Revenue

The income a company earns from providing services as opposed to selling physical goods, and it is recorded as it is earned in the accounting period.

Balance Sheet Columns

Sections in a balance sheet that categorize assets, liabilities, and shareholder's equity at a specific point in time.