It is necessary to use a purchases account with:
A) only the periodic count method.
B) only the perpetual accounting control method.
C) both the periodic count and the perpetual accounting control methods.
D) either method,if the system designer has included it in the chart of accounts.

Question

Quizplus · Accepted Answer

In the periodic inventory system, a purchases account is used to record inventory purchases. In the perpetual system, inventory purchases are directly recorded in the inventory account, not a separate purchases account.

It Is Necessary to Use a Purchases Account With