The linked accounts for Freight and GST will be updated after which entry -
A)a purchase invoice with cash payment
B)a purchase invoice on account with transportation costs
C)a purchase invoice quote only
D)the cash payment entry for choice (b)

Question

Quizplus · Accepted Answer

If the purchase invoice includes transportation costs, it means that there are freight charges that need to be included in the Freight account and GST charges that need to be included in the GST account. Therefore, updating the linked accounts for Freight and GST is necessary in this scenario.

The Linked Accounts for Freight and GST Will Be Updated