When goods, in which business deals are sold, it is called___________?
Correct answer: C. Sales
- A. Purchases
- B. Return inward
- C. Sales
- D. Return outwards
Explanation
When a trading business sells the goods in which it deals, the transaction is recorded as sales. Purchases refer to acquiring those goods, while returns describe goods sent back.
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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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