Accountancy MCQs
Topic Notes: Accountancy
General Description
Plato
- Biography: Ancient Greek philosopher (427–347 BCE), student of Socrates and teacher of Aristotle, founder of the Academy in Athens.
- Important Ideas:
- Theory of Forms
- Philosopher-King
- Ideal State
11
What is the alternative terminology for a purchase return?
Answer:
Return outwards
A purchase return occurs when goods previously bought are sent back to the supplier. Since the goods are moving out of the business, it is commonly referred to as 'Return Outwards'.
12
What is the alternative term used for 'purchases return'?
Answer:
Return outwards
Purchases return refers to goods returned by the business to its suppliers. Since these goods are moving out of the business premises, this account is commonly referred to as 'Return Outwards'. Conversely, 'Return Inwards' is the term used for sales returns, where goods are returned by customers to the business.
13
Which specialized journal is used to document goods that have been returned by the business to its suppliers?
Answer:
Purchase return journal
The purchase return journal, often called the returns outward book, is specifically maintained to record the return of goods previously purchased on credit. Entries are typically made based on the credit notes received from suppliers, which confirm the reduction in the amount owed to them.