A purchase is recognized in the accounting records when
A)payment is made for the item purchased.
B)the purchase requisition is sent to the purchasing department.
C)title transfers from the seller to the buyer.
D)the buyer receives the seller's bill.

Question

Quizplus · Accepted Answer

Recognition of a purchase happens when the title of the goods passes from the seller to the buyer. This may happen at the time of delivery, upon receipt of an invoice, or when payment is made. However, it is the transfer of title that is the most crucial factor in recording a purchase in the accounting records.

A Purchase Is Recognized in the Accounting Records When