If a Company Returns an Item to a Supplier,the Supplier

question 1

Multiple Choice

If a company returns an item to a supplier,the supplier will record the return as:

• A)sales returns and allowances.
• B)shrinkage.
• C)sales discounts.
• D)purchase returns and allowances.

---

Definitions:

Liquidate

To convert assets into cash or to settle debts by selling off assets.

Scanlon Plan

A type of gainsharing program where employees share in financial gains through productivity improvements.

Target Ratio

A specific numerical goal used in finance and business to measure and compare the efficiency, performance, or balance of different areas of operations or financial health.

Labor Costs

The total expense incurred by employers for the salaries, wages, benefits, and other forms of compensation paid to employees.