O'Hare Company is a manufacturing firm that uses a job-order costing system to determine the costs of its products.On January 1,O'Hare purchased $3,000 of raw materials with cash.The entry to record the purchase of raw materials would:
A) Increase total assets.
B) Decrease total assets.
C) Have no impact on total assets.
D) Decrease net income.

Question

Quizplus · Accepted Answer

The purchase of raw materials with cash involves exchanging one asset (cash) for another asset (raw materials), so total assets remain unchanged.

O'Hare Company Is a Manufacturing Firm That Uses a Job-Order