Asked by Kaylee Rabon on Jun 26, 2024
Verified
When merchandise is bought for resale, which of the following accounts would be increased?
A) Store Equipment
B) Merchandise Inventory
C) Accounts Payable
D) Supplies Expense
Merchandise Inventory
Refers to the products a company has in stock that are available for sale to customers.
Accounts Payable
Liabilities of a company representing amounts owed to creditors for goods and services that were purchased on credit.
Store Equipment
Fixed assets or long-term assets purchased for the operation of a store, such as shelves, register systems, and furniture, which are used in the business over several years.
- Understand the diversity of accounts affected by the commercial activities of buying and selling merchandise.
Verified Answer
BV
Becky VelezJun 29, 2024
Final Answer :
B
Explanation :
Merchandise Inventory account is increased when goods are purchased for resale, as it reflects the cost of goods that are available for sale to customers.
Learning Objectives
- Understand the diversity of accounts affected by the commercial activities of buying and selling merchandise.