When goods are purchased on credit
When goods are purchased on cash
When goods are sold
When goods are taken by proprietor for personal use
Answer is Wrong!
Answer is Right!
The correct answer is: A. When goods are purchased on credit.
Purchase account is a liability account that is used to record the cost of goods that a company purchases on credit. When a company purchases goods on credit, it is essentially borrowing money from the supplier. The purchase account is credited when
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