The Purchases Discounts Taken Account May Appear in the Accounting

question 42

Multiple Choice

The purchases discounts taken account may appear in the accounting records if which one of the following methods is used to account for purchase discounts?

• A)net price method
• B)gross price method
• C)allowance method
• D)sales price method

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Definitions:

Magnitude

The size, extent, or importance of something, which can be quantitative or qualitative in nature.

Correlation Coefficient

A statistical measure that describes the extent to which two variables change together, and the direction of this relationship.

Squared Value

A mathematical term that refers to a number multiplied by itself.

Variability

A measure of the spread or dispersion of a set of data points within a dataset.