POA: Double entry for Stock

Sales and Purchases are accounts used in the double entry recording of Stock___

Sales show Stock flowing into the business, while Purchases show Stock flowing out___

Sales Returns are the same as Returns Inward___

To record Purchases Returns, you Debit the Purchases return account___

Which item would you enter using a Credit entry? (Click all that you believe are correct)

• Sales

• Purchases

• A person selling to the company on credit

• Purchase Returns

If you make a payment to a Creditor, you would..... (Select all that you think to be correct)

• Debit their account

• Credit their account

• Debit the Bank/Cash account

• Credit the Bank/Cash account

Write the most common form of the Accounting Equation____

A Creditor is someone who........

• Owes money to the Business

• Purchased goods from the company on credit

• Sells goods to the business

• Is owed money by the Business

Which of the following is True about Sales Returns?

• Decreases Sales

• Increases Sales

• Increases Stock

• Decreases Stock

Inventory and Stock are one and the same___