Which of these is not directly affected by purchases and payments transactions?
A) plant assets.
B) work-in-process inventory.
C) accounts payable.
D) prepaid expenses.

Question

Quizplus · Accepted Answer

Work-in-process inventory is primarily affected by production activities rather than purchases and payments transactions. Purchases and payments directly impact plant assets (through the acquisition of fixed assets), accounts payable (through the creation of liabilities for purchases on credit), and prepaid expenses (through the prepayment for goods or services).

Which of These Is Not Directly Affected by Purchases and Payments