When a Seller Records a Return of Goods, the Account

question 15

Multiple Choice

When a seller records a return of goods, the account that is credited is

• A)Sales Revenue.
• B)Sales Returns and Allowances.
• C)Inventory.
• D)Accounts Receivable.

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Definitions:

Return on Investment

A financial metric used to measure the profitability or efficiency of an investment, calculated by dividing net profit by the initial cost of the investment.

Minimum Required Return

This refers to the smallest expected or necessary rate of return on an investment to make it worthwhile.

Transfer Price

The amount levied on goods or services traded across sections or sister companies within the same organization.

Motor Division

A sector or unit within a company that specializes in the development, production, and marketing of motor vehicles or engine components.