All of the Following Statements Regarding Sales Returns and Allowances

question 166

Multiple Choice

All of the following statements regarding sales returns and allowances are true except:

• A)New revenue recognition rules require sellers to report sales net of expected returns and allowances for annual periods.
• B)The Inventory Returns Estimated account is a current liability account.
• C)Sales returns and allowances estimates are typically made as period-end adjustments.
• D)When sales returns and allowances adjustments are made to sales,an estimate must also be made for the cost side.
• E)Sales Refund Payable is a current liability account.

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Definitions:

Participation

The act of taking part or getting involved in activities or discussions, often referring to employees’ involvement in decision-making processes within an organization.

Repetition

The act of repeating something, often to emphasize or ensure understanding.

Development

Planned activities aimed at providing employees with enhanced skills and competencies for the future.

Training

Planned activities aimed to provide employees with enhanced skills to perform their current jobs.