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Can you explain the answer of this question below:
Purchases book records:
- A:All cash purchases
- B:All credit purchases of goods & assets
- C:All Credit purchases of goods in trade only.
- D:None of the above
The answer is d.
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Verified Answer
Can you explain the answer of this question below:Purchases book recor...
Purchase Book is a subsidiary book which records the transactions of credit purchase of goods for trading purpose.
Most Upvoted Answer
Can you explain the answer of this question below:Purchases book recor...
Hello there ! A Purchase day book is an accounting ledger in which in which parchasing transactions are recorded. Here, option : C) All credit purchases of goods in trade onlu is more appropiate than other options...i hope it helps you Thanks !
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Can you explain the answer of this question below:Purchases book recor...
Understanding the Purchases Book
The Purchases Book is a specialized ledger used to record credit purchases of goods, but not all types of purchases. Let's break down the options to understand why the correct answer is D: None of the above.
Option A: All cash purchases
- Cash purchases are recorded in the Cash Book, not the Purchases Book.
- Therefore, this option is incorrect.
Option B: All credit purchases of goods & assets
- The Purchases Book specifically focuses on goods purchased for resale, not assets.
- Hence, this option is also incorrect.
Option C: All Credit purchases of goods in trade only
- While the Purchases Book records credit purchases of goods, it does not include all types of goods.
- Specifically, it excludes fixed assets and other non-trade items, making this option incomplete.
Conclusion
- The Purchases Book is designed exclusively for recording credit purchases related to trading goods.
- As none of the options A, B, or C accurately describe the function of the Purchases Book, the answer is D: None of the above.
This distinction is crucial for proper accounting practices and financial reporting.
The Purchases Book is a specialized ledger used to record credit purchases of goods, but not all types of purchases. Let's break down the options to understand why the correct answer is D: None of the above.
Option A: All cash purchases
- Cash purchases are recorded in the Cash Book, not the Purchases Book.
- Therefore, this option is incorrect.
Option B: All credit purchases of goods & assets
- The Purchases Book specifically focuses on goods purchased for resale, not assets.
- Hence, this option is also incorrect.
Option C: All Credit purchases of goods in trade only
- While the Purchases Book records credit purchases of goods, it does not include all types of goods.
- Specifically, it excludes fixed assets and other non-trade items, making this option incomplete.
Conclusion
- The Purchases Book is designed exclusively for recording credit purchases related to trading goods.
- As none of the options A, B, or C accurately describe the function of the Purchases Book, the answer is D: None of the above.
This distinction is crucial for proper accounting practices and financial reporting.
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Can you explain the answer of this question below:Purchases book records:A:All cash purchasesB:All credit purchases of goods & assetsC:All Credit purchases of goods in trade only.D:None of the aboveThe answer is d.
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Can you explain the answer of this question below:Purchases book records:A:All cash purchasesB:All credit purchases of goods & assetsC:All Credit purchases of goods in trade only.D:None of the aboveThe answer is d. for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Can you explain the answer of this question below:Purchases book records:A:All cash purchasesB:All credit purchases of goods & assetsC:All Credit purchases of goods in trade only.D:None of the aboveThe answer is d. covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:Purchases book records:A:All cash purchasesB:All credit purchases of goods & assetsC:All Credit purchases of goods in trade only.D:None of the aboveThe answer is d..
Can you explain the answer of this question below:Purchases book records:A:All cash purchasesB:All credit purchases of goods & assetsC:All Credit purchases of goods in trade only.D:None of the aboveThe answer is d. for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Can you explain the answer of this question below:Purchases book records:A:All cash purchasesB:All credit purchases of goods & assetsC:All Credit purchases of goods in trade only.D:None of the aboveThe answer is d. covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:Purchases book records:A:All cash purchasesB:All credit purchases of goods & assetsC:All Credit purchases of goods in trade only.D:None of the aboveThe answer is d..
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