Which Statement Is Not Correct

question 24

Multiple Choice

Which statement is not correct?

• A)"Purchase discount lost" is reported if the gross method is used.
• B)Cut off means that obligations are reported in the proper accounting period.
• C)Supplier discounts can be accounted for by using the gross method.
• D)Trade payables are obligations for goods received or services used.

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Definitions:

Third Party

A third party is an individual or entity who is not directly involved in a legal agreement or dispute but may be affected by it or have rights or obligations related to it.

Improper Person

An individual deemed unsuitable or unqualified under certain criteria or regulations.

Criminal

Pertaining to or involving crimes, describing actions that are against the law.

Liability

A financial obligation or amount that an individual or entity owes to another.