Accounting - Study Mode

[#636] Which of the following will be debited if a business purchases goods on credit?
Correct Answer

(D) Purchases

Explanation

Solution: Purchases will be debited if a business purchases goods on credit.

[#637] Which of the following accounts will be debited if the business's owner withdraws cash from business for personal use?
Correct Answer

(A) Drawings

Explanation

Solution: Drawings accounts will be debited if the business's owner withdraws cash from business for personal use. Goods withdrawn for personal use by the owner of a business reduce inventory and are recorded on a drawings account.

[#638] Journals are also referred to as
Correct Answer

(B) Book of original entries

Explanation

Solution: Journals are also referred to as Book of original entries. The information in these books is then summarized and posted into a general ledger, from which financial statements are produced.

[#639] Which of the following relates with social Accounting :
Correct Answer

(D) All of the above

[#640] Dependent branch can make
Correct Answer

(C) Both cash and credit sales