A Shift from High-Margin Sales to Low-Margin Sales

question 73

Multiple Choice

A shift from high-margin sales to low-margin sales

• A) may decrease net income, even though there is an increase in total units sold.
• B) will always decrease net income.
• C) will always increase net income.
• D) will always increase units sold.

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Definitions:

Voucher System

An accounting system used to authorize and record transactions such as purchases or sales.

Purchases Journal

A record of all purchases of goods and services on credit, aimed at simplifying the accounting process.

Voucher Register

A record of vouchers that have been prepared, detailing amounts to be paid, accounts affected, and supporting documentation.

Voucher System

A control mechanism in accounting wherein vouchers are prepared as evidence of authorization before transactions are recorded.