Every transaction in a purchases journal includes
A) a credit to Cash.
B) a credit to Inventory.
C) a credit to Accounts Payable.
D) a debit to Office Supplies.

Question

Quizplus · Accepted Answer

Every transaction in a purchases journal involves purchasing inventory on credit, which creates an increase in Accounts Payable. There is no mention of cash or office supplies in the question. Therefore, options A and D can be eliminated. Option B is incorrect because not all purchases will increase inventory.

Every Transaction in a Purchases Journal Includes