Goods return to supplier are known as:__________?

Correct answer: B. Purchase return

  • A. Merchandise return
  • B. Purchase return
  • C. Return inwards
  • D. Sales return

Explanation

Goods returned to a supplier are purchase returns, also called returns outward from the buyer's business. Sales returns or returns inward are goods sent back by customers.

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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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