An Entry Debiting Accounts Payable and Crediting Purchase Returns and Allowances

question 2

Multiple Choice

An entry debiting Accounts Payable and crediting Purchase Returns and Allowances indicates a:

• A) sale on account to a customer.
• B) LCM is an example of the revenue recognition principle.
• C) return of goods originally sold on account to a customer.
• D) return of goods originally purchased on account to the supplier.

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Definitions:

Variable

An element, feature, or factor that is likely to vary or change; in research, it is something that is measured or manipulated to assess its effects on an outcome.

Statistic

A numerical value that describes or summarizes some aspect of a set of data.

Distribution

The way in which values in a dataset are spread out or clustered across a range.

Variability

Variability is a statistical concept that describes the extent to which data points in a data set differ from each other and from the average or mean value of the set.