One of Hawk Company's Customers Returned a Product That Cost

question 73

Multiple Choice

One of Hawk Company's customers returned a product that cost Hawk $300,which was sold on account for $450.Which of the following does not correctly describe the effect of the return on the financial statements?

• A)Gross profit decreases $150.
• B)Total current assets decrease $150.
• C)Sales returns and allowances increase $450.
• D)Operating expenses increase $150.

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Definitions:

Frequency Source

A device or circuit component that generates an oscillating electrical signal of a specific frequency.

Capacitive Reactance

The opposition to change in voltage across a capacitor, inversely proportional to the frequency of the applied AC signal and the capacitor's capacitance.

Frequency

The number of times a periodic event repeats in a given time unit, often used to describe the rate at which alternating current cycles, measured in hertz (Hz).

Pure Capacitive Circuit

An electric circuit that contains only a capacitor, which stores electrical energy in an electric field, showing ideal capacitive behavior without resistance or inductance in the circuit.