a-4, b-3, c-2, d-1
a-2, b-1, c-4, d-3
a-2, b-4, c-1, d-3
a-3, b-4, c-1, d-2
Answer is Right!
Answer is Wrong!
The correct answer is: A. a-4, b-3, c-2, d-1
Here is a brief explanation of each option:
- a. The document related to sales return is a credit note. A credit note is a document issued by a seller to a buyer to acknowledge the return of goods or services. It is used to reduce the amount owed by the buyer to the seller.
- b. Bank reconciliation statement is prepared by the business. A bank reconciliation statement is a document that reconciles the balance of a business’s bank account with the balance of the bank statement. It is prepared by comparing the two balances and identifying any differences.
- c. Purchases account will always have a debit balance. A purchases account is an account in the general ledger that records the cost of goods purchased by a business. It is a debit balance account because it represents an increase in assets.
- d. When the word ‘paid’ occurs, it means reduction of cash. When a business pays an invoice, it reduces the amount of cash it has on hand. This is because cash is an asset, and when an asset is used up, it is recorded as a decrease in the asset account.
I hope this helps!