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WAEC Financial Accounting 2016 Question 13

Question 13

Final Accounts of a Sole Trader

In accounting context, purchases refer to

  1. A.goods bought and paid for only.
  2. B.goods bought for resale only.
  3. C.goods bought on credit only.
  4. D.goods bought to be used in the firm only.
Show the answer and explanation

Answer: B (goods bought for resale only.)

Explanation

'Purchases' means goods bought to be resold, whether for cash or on credit.