Which of the Following Is TRUE of a Purchases Journal

question 66

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:

Cash Receipts

The total amount of cash collected by a business during a specific period, including revenues and other income.