Reductions from List or Quoted Prices to Buyers for Performing

question 292

Multiple Choice

Reductions from list or quoted prices to buyers for performing some activity,similar to discounts,are referred to as

• A)allowances.
• B)subsidies.
• C)remittances.
• D)noncumulative deductions.
• E)list price deductions.

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Definitions:

Liability

A financial obligation or debt owed by a company to third parties, to be settled through the transfer of assets, provision of services, or other economic benefits.

Low-Quality Earnings

Earnings reported by a company that may not be repeatable, sustainable, or indicative of its operational health, often inflated by accounting gimmicks or one-time items.

Earnings Items

The components that make up the net income of a company, including revenue, expenses, gains, and losses.

Company's Earnings

Company's earnings refer to the profit a company makes after deducting all costs and expenses from its total revenue.