A Document Indicating a Reduction in the Amount Owed to a Vendor

question 77

Multiple Choice

A document indicating a reduction in the amount owed to a vendor because of returned goods is:

• A) a debit note.
• B) a shipping room report.
• C) a receiving room report.
• D) a credit note.

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Definitions:

Capitalist System

An economic system where private individuals or businesses own capital goods and the production of goods and services is based on supply and demand in the market.

Central Planning

An economic system in which decisions about production, investment, and distribution are made by a central authority, often the government.

Capital Goods

Long-lasting goods acquired by firms for producing goods and services, including machinery, buildings, and equipment.

Market System

An economic system where the allocation of resources and the distribution of goods and services are determined by supply and demand in a free market.