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:

Adolescence

is a transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

Belongingness

The human emotional need to be an accepted member of a group, whether it is family, friends, co-workers, or a larger entity.

Physiological Needs

These are basic physical requirements for human survival, such as food, water, and shelter, as ranked at the bottom of Maslow's hierarchy of needs.

Self-Actualization

A psychological state or process of realizing and fulfilling one's talents, capacities, and potentialities.