The classes of transactions in the acquisition and payment cycle include:
A) acquisition of goods.
B) acquisition of goods and services.
C) acquisition of goods and services, cash payments, and purchase returns and discounts.
D) acquisition of goods and services, and cash payments.

Question

Quizplus · Accepted Answer

The acquisition and payment cycle involves the acquisition of goods and services, cash payments, and purchase returns and discounts. Therefore, option C is the best choice. Options A and B are too narrow, as they do not include all types of transactions in the cycle, and option D omits the important category of purchase returns and discounts.

The Classes of Transactions in the Acquisition and Payment Cycle