The journal entry to record the purchase of materials on account in process cost accounting is a (n) : decrease in assets and a decrease in liabilities increase in assets and a decrease in liabilities increase in one asset and a decrease in another asset increase in assets and an increase in liabilities

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1 November, 08:13

The journal entry to record the purchase of materials on account in process cost accounting is a (n) : decrease in assets and a decrease in liabilities increase in assets and a decrease in liabilities increase in one asset and a decrease in another asset increase in assets and an increase in liabilities

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Alberto Adams · Answer 1

increase in assets and an increase in liabilities

Explanation:

The company's assets (raw materials inventory) increase by the amount the company now posses.

Then, as this is a purchase on account; the companyu is taking an obligation to pay in the near future therefore, a liability is created between the company and the supplier.

In the end, both increase. The assest and liabilities.