A Purchase Return of Goods Purchased on Credit Is Recorded

question 140

Multiple Choice

A purchase return of goods purchased on credit is recorded by the purchasing company as a debit to what account?

• A) Accounts receivable
• B) Inventory
• C) Cost of goods sold
• D) Accounts payable

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Definitions:

Angel

A lender, usually a successful entrepreneur, who loans money to help new businesses.

Assets

Resources owned or controlled by a business, considered valuable because they can be used to produce goods, provide services, or generate revenue.

Venture Capitalists

Investors who provide capital to startup companies and small businesses with perceived long-term growth potential in exchange for equity.

High-Potential

An individual or asset deemed to have significant capabilities or value for future growth or success.