Purchase Book records all credit purchases of goods.
The correct option is A True
All goods purchased on credit is recorded under Purchase Book. Only credit purchases are recorded in Purchase book and not cash purchases. Goods means those things that are purchased or produced for resale in business. Any purchase of asset is not recorded in Purchase book. Whenever goods are purchased on credit purchase account is debited (as per the rule, "Debit what comes in") i.e. goods comes in, hence purchase account is debited. The document on the basis of which purchase book is prepared is known as "Credit memo". For example, if a business deals in cloth, credit purchases of cloth will be recorded in the purchase book, but purchase of furniture, which is an asset, will not be recorded in the purchase book.