If a Credit Memorandum Is Issued, What Account Will Be

question 54

Multiple Choice

If a credit memorandum is issued, what account will be decreased on the seller's books?

• A) Accounts Receivable
• B) Accounts Payable
• C) Sales Discount
• D) Sales Returns and Allowances

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Definitions:

Marginal Costs

Marginal costs refer to the added expense required to manufacture or produce one additional unit of a product or service.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the quantity of output produced.

Market Price

The current price at which a good or service can be bought or sold in a given market.

Market Price

The current price at which a good or service can be bought or sold in a given market, determined by supply and demand forces.