Problems That Result in the Customer Severing the Relationship with the Seller

question 51

Multiple Choice

Problems that result in the customer severing the relationship with the seller may be avoided by:

• A) Always having the lowest price.
• B) Always delivering on time.
• C) Maintaining open, two-way communication.
• D) Involving Upper level management.
• E) Avoiding the customer.

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Definitions:

Adjusting Journal Entry

An entry made in the accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.

Deferred Revenue Account

An account on the balance sheet that represents payment received by a company for goods and services not yet delivered or rendered, considered a liability.

Liability Account

A liability account is a financial reporting account that is used to record obligations or debts that a company owes to others, such as loans, accounts payable, or mortgages.

Noninterest-Bearing Notes

These are promissory notes issued at a discount to face value that do not pay periodic interest, with the return to the investor being the difference between the purchase price and the face value at maturity.