In a Periodic Inventory System, Purchases Is a Temporary Account

question 61

True/False

In a periodic inventory system, Purchases is a temporary account.

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Definitions:

Deposit

A deposit is a sum of money placed in an account or given to a party as security for the fulfillment of a contract, often refundable after certain conditions are met.

Check Stub

A check stub is the part of a check that is kept as a record by the issuer, detailing the amount, date, and payee of the check.

Cash Balance

The amount of currency that a company or individual has on hand, including deposits in bank accounts that are available for immediate use.

Deposit

A sum of money placed into an account or given as partial payment to secure a purchase or service.