It Is Important to Record Sales Returns and Allowances in a Separate

question 120

True/False

It is important to record sales returns and allowances in a separate account so that management can determine the volume of returns and allowances in order to measure the quality of their products.

---

Definitions:

Sales/FOB Terms

Terms used in international trade to define when and where the responsibility and ownership of goods are transferred from the seller to the buyer; "FOB" stands for Free On Board.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type, typically used as inputs in the production of other goods or services.

Distinctives

Unique characteristics or features that differentiate a product, service, or organization from its competitors.

High Risk

A situation or investment that carries a significant chance of loss or failure.