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Explain Why, When a Customer Returns Merchandise After It Was

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Essay

Explain why, when a customer returns merchandise after it was paid for, he/she may or may not receive credit equal to the invoice value of the merchandise returned.


Definitions:

Operating Cash Payments

Cash payments made by a business for its operational activities, such as paying for goods, services, and employee salaries.

Equity Securities

Financial instruments representing ownership interest in a corporation, such as stocks.

Debt Securities

Financial instruments representing a loan made by the investor to the issuer, which can include government bonds, corporate bonds, and other types of debts.

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