How Would You Enter a Purchase Return of an Inventory

question 27

Multiple Choice

How would you enter a purchase return of an inventory item in the purchases journal-

• A) record a negative amount in the price column
• B) record a negative quantity in the quantity column
• C) record a negative sign in front of the item number
• D) all of the above

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Definitions:

Leverage

The ability to finance an investment through borrowed funds, increasing both the potential for return and the level of risk.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit, encompassing stocks, bonds, real estate, and other assets.

Principal

An amount of money borrowed from a lender.

Equity Funds

Investment funds that primarily invest in stocks with the aim of achieving growth by capital gains and dividends for their investors.