Which of the Following Is True of a Purchases Journal

question 121

Multiple Choice

Which of the following is true of a purchases journal?

• A)For a periodic inventory system,the Merchandise Inventory DR column is replaced with a column titled Cost of Goods Sold DR.
• B)Cash purchases are recorded in the purchases journal.
• C)For a perpetual inventory system,a column titled Purchases DR is needed.
• D)The Other Accounts DR column is used for purchases on account of items other than merchandise inventory and office supplies.

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Definitions:

Better Off

Refers to a situation where an individual's or group's economic situation or welfare has improved.

Worse Off

A situation in which an individual or group is in a less favorable or disadvantageous position compared to a previous state or to others.

Adam Smith

A Scottish economist and philosopher known as the "father of economics," renowned for his work on the nature and causes of the wealth of nations.

Cost To Buy

The total amount of money required to purchase a good or service including taxes and fees.