Journal entries commonly processed as part of the acquisition / payment process can include:
A)Debits to inventory.
B)Credits to accounts payable.
C)Credits to cash.
D)All of the above.

Question

Quizplus · Accepted Answer

Debits to inventory are made when goods are received as part of the acquisition process. Credits to accounts payable are processed when invoices are received and recognized as liabilities to be paid. Credits to cash are made when payments are made to vendors as part of the payment process. Therefore, all three options are commonly processed as part of the acquisition/payment process.

Journal Entries Commonly Processed as Part of the Acquisition