When You Allow Allocation for All Expense and Revenue Accounts

question 17

Multiple Choice

When you allow allocation for all expense and revenue accounts the following will not be allocated -

• A)sales and purchase discount amounts
• B)freight expense amounts
• C)freight revenue amounts
• D)all these expense accounts will be correctly allocated if you enter the allocation details

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Definitions:

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares at certain times during their life, usually at the discretion of the bondholder.

Bearer Bonds

A type of fixed-income security that is owned by the holder or bearer, instead of being registered to a specific owner.

Sinking Fund Bonds

Bonds that include a provision for the issuer to create a fund for repaying the bond principal at or before maturity.

Term Bonds

Bonds that have a specific maturity date on which the principal is due to be paid to bondholders.