A-LevelAccountingThe accounting cycle9706/12 · Oct/Nov 2015 · Q161 Mark

An invoice for purchases was credited to the purchases account. How is the balance on the purchases account corrected?

Adecrease by the value of the invoice

Bdecrease by twice the value of the invoice

Cincrease by the value of the invoice

Dincrease by twice the value of the invoice

✓ Correct answer

D: increase by twice the value of the invoice

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Topic: The accounting cycle, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2015 Paper 1 Variant 2, question 16.

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