Which of the following accounts does not appear in the acquisition and expenditure cycle?
A)Cash
B)Purchases Returns
C)Sales Returns
D)Prepaid Insurance

Question

Quizplus · Accepted Answer

The acquisition and expenditure cycle involves the purchase of goods or services and the subsequent payment for them. Cash is a key account in this cycle, as it represents the method of payment for purchases. Purchases returns and prepaid insurance are also part of the cycle, as they relate to returns of goods and pre-payment for expenses. However, sales returns do not relate to the acquisition and expenditure cycle, as they involve the return of goods by customers, rather than the purchase of goods by the company.

Which of the Following Accounts Does Not Appear in the Acquisition