Purchase journal is kept to record_____________?
Correct answer: B. All credit purchases of goods
- A. All purchases of goods
- B. All credit purchases of goods
- C. All credit purchases
- D. None of these
Explanation
The purchase journal records credit purchases of goods purchased for resale. Cash purchases and credit purchases of assets are recorded elsewhere, so “all purchases of goods” is too broad.
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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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