Transactions involved in the acquisition/payment process include:
A)Debit inventory, credit cash
B)Debit inventory, credit accounts payable
C)Debit accounts payable, credit cash
D)All of these

Question

Quizplus · Accepted Answer

All of these transactions are involved in the acquisition/payment process, depending on whether the company is paying for inventory with cash or on credit. If paying with cash, inventory will be debited, and cash will be credited. If paying on credit, inventory will still be debited, but accounts payable will be credited instead of cash.

Transactions Involved in the Acquisition/payment Process Include