Multiple choice

Total of these transactions are posted in purchase account :

  1. purchases return

  2. cash & credit purchases

  3. purchase of building

  4. purchase of furniture
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Purchase Account is used to record the total cost of all goods purchased for resale, regardless of whether they were bought for cash or on credit. Purchases of fixed assets like buildings or furniture are recorded in their specific asset accounts instead.

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