Which of the Following Transactions Will Be Recorded in the Purchases

question 11

Multiple Choice

Which of the following transactions will be recorded in the purchases journal?

• A)purchase of furniture on account
• B)purchase of merchandise inventory for cash
• C)sale of a product on account
• D)sales of a product for cash

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, including expenses like rent, salaries, and insurance.

Variable Costs

Expenses that change in proportion to the activity of a business, such as utility bills that increase with production volume.

Cash Break-Even

The sales level where operating cash flow is equal to zero.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and loan payments.