The Sales Returns and Allowances Account and the Sales Discount

question 238

True/False

The Sales Returns and Allowances account and the Sales Discount account are both classified as expense accounts.

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Definitions:

Transfer Agent

An entity appointed by a corporation to maintain records of investors, account balances, and transactions; to issue and cancel shares; and to handle share transfers.

Financial Institution

An establishment that conducts financial transactions such as investments, loans, and deposits.

Stockholders

Individuals or entities that own shares in a corporation, thus having an ownership stake in the business.

Private Corporation

A corporation owned by a small group of people and its shares are not traded publicly but are held privately.