Which source document normally supports a credit purchase of goods by a business?
Correct answer: A. A supplier's invoice
- A. A supplier's invoice
- B. A customer's receipt
- C. A bank pay-in slip
- D. A petty cash voucher
Explanation
A supplier sends an invoice to record goods supplied on credit, and the buyer uses it as evidence of the purchase. A receipt generally proves payment, while the other documents relate to banking or small cash expenses.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Double Entry and Books of Prime Entry
Double entry records every transaction with equal debit and credit entries, based on the accounting equation and the classification of assets, liabilities, capital, income and expenses. Books of prime entry include the sales, purchases, returns and cash books, journal, and source documents used before transactions are posted to ledger accounts.
Practise Double Entry and Books of Prime Entry
34 free Double Entry and Books of Prime Entry MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Double Entry and Books of Prime Entry questions
What is the primary purpose of a book of prime entry?
Under the imprest system of petty cash, the petty cashier is normally reimbursed with an amount equal to which figure?
Which transaction is entered in the journal proper rather than the sales day book?
What is normally recorded in the sales returns book?
When the total of the purchases day book is posted, which account is normally debited?
Which transaction is normally recorded in the journal proper as an opening entry?