A delivery of inventory from a vendor,with whom a credit line is already established,would be initially recorded in which type of accounting record and as part of what transaction cycle?
A)purchases journal;expenditure cycle
B)general journal;expenditure cycle
C)general ledger;expenditure cycle
D)cash disbursements journal;production cycle

Question

Quizplus · Accepted Answer

A delivery of inventory from a vendor, with whom a credit line is already established, is an example of a purchase transaction in the expenditure cycle. The initial recording of this transaction would be in the purchases journal, which is used to record all purchases of inventory and supplies on credit. The general ledger is a master record of all transactions, and the cash disbursements journal is used to record payments made to vendors, so neither of these options would be the initially recorded accounting record for this transaction. The production cycle involves manufacturing or assembling goods and would not be relevant to the purchase of inventory from a vendor.

A Delivery of Inventory from a Vendor,with Whom a Credit