Different Types of Purchase

Select the correct alternative:

Question (ix)

Purchase means purchase of

(a) goods for resale.

(b) stationery for office use.

(c) assets for the factory.

(d) None of these.

Answer:

(a) goods for resale

• Purchase refer to goods purchased for re-sale or manufacturing of goods.

Question (xxviii)

Purchase refers to the buying of

(a) Stationery for office use.

(b) Assets for the factory.

(c) Goods for resale.

(d) Investment.

Answer:

(c) Goods for resale.

Question (xxix)

Goods means

(a) Items purchased for own consumption.

(b) Items purchased for donation.

(c) Items purchased for resale.

(d) Items purchased for use in business

Answer:

(c) Items purchased for resale.

Question (xvii)

Which of the following are goods?

(a) Machines manufactured for sale.

(b) Furniture purchased for sale.

(c) Books and stationery purchased by a book-seller.

(d) All of the above.

Answer:

(d) All of the above.

Explanation:

In this question refers to the tangible items that a business purchases, manufactures, and sells to generate revenue.

Shopkeeper & manufactures sell goods while service provider deals in services.

Question 4

D-Gadgets Traders deals in computer accessories such as Laptops, desktops, Tablets, Printers, Digital Diaries, I-Pods etc. In the books of the firm, Purchases refers to the purchase of

(a) Tablets for donating to NGO.

(b) Laptops for Office purpose.

(c) Desktop for Proprietor’s son.

(d) Printers for Resale.

Answer:

(d) Printers for Resale

Explanation:

In this question refers to the tangible items that a business purchases, manufactures, and sells to generate revenue.

Shopkeeper & manufactures sell goods while service provider deals in services.

Question 13

A firm has sold its old asset for ₹ 10,000. The sale amount will be included in sales. Is it correct?

Answer:

No, the amount will not be included in sale because it is not a sale of goods.