A debit to Materials Inventory indicates materials were
A)ordered.
B)requisitioned.
C)put into production.
D)purchased.

Question

Quizplus · Accepted Answer

A debit to Materials Inventory means that materials were purchased and added to the inventory. Option A suggests that materials were just ordered, which could mean that the purchase has been initiated but the materials have not been received. Option B means that materials were taken out of the inventory for use, which would result in a credit to Materials Inventory. Option C means that materials have been used in production, which would also result in a credit to Materials Inventory. Therefore, option D is the best choice as it accurately reflects the purpose of the debit to Materials Inventory.

A Debit to Materials Inventory Indicates Materials Were