A Single-Column Purchases Journal Indicates That

question 32

Multiple Choice

A single-column purchases journal indicates that

• A) only purchases of merchandise on account can be recorded.
• B) all purchases of merchandise can be recorded.
• C) all acquisitions on account can be recorded.
• D) another column must be added so that debits and credits can be recorded.

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Definitions:

ASPE

The Accounting Standards for Private Enterprises (ASPE) is a set of accounting standards for private companies in Canada, providing guidelines on financial reporting practices.

Accrual Basis

An accounting method where revenues are recorded when earned, and expenses are recorded when incurred, regardless of when cash is exchanged.

Net Income

The net income of a business once all costs and taxes are subtracted from its total earnings.

Cash Basis

The cash basis is an accounting method where revenues and expenses are recognized only when cash is received or paid, as opposed to when they are incurred.