The gross method of recording purchases refers to recording:
A)Purchases at the invoice price less any cash discounts.
B)Specified amounts and timing of payments that a buyer agrees to in return for being granted credit.
C)Purchases at the full invoice price,without deducting any cash discounts.
D)Inventory at its selling price.
E)Inventory at the lower of cost or market.

Question

Quizplus · Accepted Answer

The gross method of recording purchases involves recording purchases at their full invoice price without deducting any cash discounts. This method is used when a company does not take advantage of cash discounts offered by suppliers, and instead pays the full invoice amount.

The Gross Method of Recording Purchases Refers to Recording