Which of the following statements about merchandising activities is true? A Inventory is recorded as a...

 

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Which of the following statements about merchandising activities is true? A Inventory is recorded as a cost. B. As inventory is purchased, the Inventory Expense account is debited and Cash (or Accounts Payable) is credited. C. As inventory is sold, its cost is transferred from the income statement to the balance sheet. D. As inventory is sold, its cost is transferred from the balance sheet to the income statement. Which of the following statements about merchandising activities is true? A Inventory is recorded as a cost. B. As inventory is purchased, the Inventory Expense account is debited and Cash (or Accounts Payable) is credited. C. As inventory is sold, its cost is transferred from the income statement to the balance sheet. D. As inventory is sold, its cost is transferred from the balance sheet to the income statement.

Answer rating: 100% (QA)

Answer D As inventory is sold its cost tran... View the full answer