Accounting - Study Mode

[#2141] Cash purchases is recorded in which of the following specialized journals?
Correct Answer

(D) Cash payments journal

Explanation

Solution: Cash purchases is recorded in Cash payments journal. Cash payment journal or cash disbursement journal is used to record all cash payments made by the business.

[#2142] A brief explanation recorded below every entry in General Journal is commonly known as
Correct Answer

(A) Narration

Explanation

Solution: A brief explanation recorded below every entry in General Journal is commonly known as Narration. A short explanation of each transaction is written under each entry which is called narration.

[#2143] Debit note is the basis for recording a transaction in which of the following journals?
Correct Answer

(D) Purchase return journal

Explanation

Solution: Debit note is the basis for recording a transaction in Purchase return journal. The source document for recording entries in the purchases return journal is generally a debit note.

[#2144] Credit note is the basis for recording a transaction in which of the following journals?
Correct Answer

(B) Sales return journal

Explanation

Solution: Credit note is the basis for recording a transaction in Sales return journal. A credit note or credit memo is a commercial document issued by a seller to a buyer.

[#2145] Specialized journals are more adequate for which type of businesses?
Correct Answer

(B) Big businesses

Explanation

Solution: Specialized journals are more adequate for Big businesses.