How Are Purchase Returns and Purchase Discounts Recorded by a Company

question 191

Multiple Choice

How are purchase returns and purchase discounts recorded by a company using the periodic inventory system?

• A)As a reduction to the Purchases account
• B)In contra-accounts to the Purchases account
• C)As operating expenses
• D)As miscellaneous expenses

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Definitions:

Organization's Culture

The shared values, beliefs, norms, and practices that shape the social and psychological environment of a business or institution.

Lack Of Resources

A situation where the necessary tools, materials, or assets are not available, potentially hindering achievement or progress.

Modified Routines

Adjustments or changes made to standard practices or procedures to improve efficiency, accommodate new conditions, or address emerging problems.

Hyper-Turbulent

Hyper-Turbulent describes situations or environments characterized by extremely high levels of change, unpredictability, and complexity.