Cash purchases is recorded in which of the following specialized journals?
Correct answer: D. Cash payments journal
- A. Purchase journal
- B. Sales journal
- C. Purchases return journal
- D. Cash payments journal
Explanation
Cash purchases are recorded in the cash payments journal because cash is paid immediately. The purchase journal records only credit purchases of goods for resale.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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