Sales and purchase journal don't record__________?
Correct answer: D. Cash sales and purchasesCompare Personal Loans
- A. Credit sales
- B. Credit purchases
- C. Credit sales and purchases
- D. Cash sales and purchasesCompare Personal Loans
Explanation
Sales and purchase journals are designed for credit transactions involving goods for resale. Cash sales and cash purchases are recorded in the cash book or relevant cash journal instead.
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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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