The Purchases account is
A) a permanent account.
B) a temporary account.
C) a subsidiary account.
D) a liability account.

Question

Quizplus · Accepted Answer

The Purchases account is a temporary account because it is closed at the end of the accounting period to transfer its balance to the Cost of Goods Sold account. It is used to record the cost of goods purchased for resale or for use in providing services during the accounting period.

The Purchases Account Is