Which of the Following Statements Regarding Sales Returns and Allowances

question 120

Multiple Choice

Which of the following statements regarding sales returns and allowances is true?

• A)Recording sales returns and allowances in a separate account is an important internal control that allows management to evaluate the volume of returns and allowances as a potential indicator of the quality of their products.
• B)The Sales Returns and Allowances account balance should be added to the Sales account balance when computing net sales.
• C)Sales Returns and Allowances account is an example of a contra-asset account.
• D)Recording a sales allowance requires two entries.

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Definitions:

Readiness For Training

The extent to which individuals have the necessary attitude, ability, and motivation to learn from training programs.

Social Support

Assistance and comfort provided by others, which can be emotional, informational, or practical in nature.

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Abilities and competencies acquired through training or experience that are essential for performing new tasks or duties.

Situational Constraints

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