Purchases Returns and Allowances Are Recorded in the

question 44

Multiple Choice

Purchases returns and allowances are recorded in the

• A) merchandise journal.
• B) general journal.
• C) purchases journal.
• D) accounts payable journal.

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Definitions:

Cash Flows

The total amounts of money being transferred into and out of a business, particularly in terms of operational, investing, and financing activities.

Financial Statement

Consolidated documents that present the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Balance Sheet

A financial statement that provides a snapshot of a company’s financial position at a specific point in time, listing assets, liabilities, and shareholders' equity.

Income Statement

A document detailing a firm's income and outgoings during a certain time, ending in either a profit or a deficit.