An Automobile Company Purchases Spark Plugs, on Account, for the Production

question 26

Multiple Choice

An automobile company purchases spark plugs, on account, for the production of its vehicles. When using a manual accounting information system, where should the company record this transaction?

• A)purchases journal
• B)general journal
• C)cash payments journal
• D)sales journal

---

Definitions:

Commercial Activity

Any type of business or activity that involves the buying and selling of goods or services.

Planning Decision

A determination made in the process of urban or regional planning, regarding the development or use of land.

Provincial Body

A governmental or regulatory authority that operates at the provincial level to oversee and manage regional affairs.

Appeal

The process of requesting a higher court to review and change the decision of a lower court.