Which of the Following Describes Sales Returns and Allowances

question 23

Multiple Choice

Which of the following describes Sales Returns and Allowances?

• A) A revenue account with a normal credit balance.
• B) An expense account with a normal debit balance.
• C) A contra revenue account with a normal debit balance.
• D) A contra expense account with a normal credit balance.

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Definitions:

Exchange Relationship

The interaction between two parties where goods, services, or ideas are exchanged, often characterized by mutual benefit.

Competitive Behavior

Refers to actions of companies that are aimed at gaining an advantage over rivals, often through strategies like pricing, product introduction, and advertising.

Socializing Force

Influences that shape individuals' behaviors, norms, and values through interactions within society and cultural environments.

Morally Right

Refers to actions or behavior that align with ethical standards and principles of fairness and justice.