When a Purchase Is Made Under the Periodic System, the Business

question 127

Multiple Choice

When a purchase is made under the periodic system, the business will:

• A) debit Vouchers Payable.
• B) not enter a voucher in the voucher register.
• C) debit Purchases.
• D) credit Purchases.

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Definitions:

Default

Failing to fulfill a legal obligation, such as not making a scheduled payment on a loan.

Negotiable Instrument

An official paper that promises the disbursement of a designated sum of money, which can be demanded at any time or paid at an agreed-upon moment, identifying the payer.

Given Value

The consideration or price paid for something; often used in the context of transactions or agreements to denote the value exchanged.

Antecedent Claim

A claim or right that precedes another in time or is earlier within a legal context or agreement.