Which of the Following Accounts Is Used for Recording Merchandise

question 80

Multiple Choice

Which of the following accounts is used for recording merchandise for resale?

• A) Purchases
• B) Purchase Discounts
• C) Purchase Discounts Lost
• D) Accounts Payable

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Definitions:

Unconsummated Transaction

A transaction that is proposed but not finalized or completed.

Tax Rate

The percentage at which an individual or corporation is taxed on earned income, investments, or properties.

Buyer Surplus

The difference between the buyer’s value (what he is willing to pay) and the price (what he has to pay).

Seller Surplus

The difference between price (what the seller is able to sell for) and the seller’s value (what she is willing to sell for).