Question

When referring to GAAP standards, the vendors list functions as the ____ ledger in QB online.

a) General
b) Sales
c) Purchase
d) Cash

Answer 1

The vendors list in QuickBooks Online functions as the purchase ledger, which is used for tracking transactions with suppliers and vendors according to GAAP standards.

Step-by-step explanation:

When referring to GAAP standards, the vendors list functions as the purchase ledger in QB online. The correct answer to the question is c) Purchase.

The purchase ledger in a company's accounting system is where all the transactions related to the purchases of the company are recorded, including payments to suppliers and vendors. In QuickBooks Online, which is a widely used accounting software, the vendors list keeps track of all the suppliers from whom a company buys goods or services and is thus synonymous with a purchase ledger. Following the Generally Accepted Accounting Principles (GAAP), maintaining a detailed purchase ledger is essential for accurate financial reporting and auditing.