Which Statement Is Incorrect

question 204

Multiple Choice

Which statement is incorrect?

• A)The sales revenue account is used to record the sales of goods held for resale to customers.
• B)Sales discounts are recorded as debits to the sales revenue account.
• C)The sales revenue account is a revenue account.
• D)The sales revenue account has a normal credit balance and is closed at the end of the accounting period.

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Definitions:

Manufacturer Orders

Requests or purchase orders placed by businesses to manufacturers for the production and supply of goods.

Milk Run

A routing strategy where a single transportation vehicle visits multiple locations on a predefined route to pick up or deliver goods, maximizing efficiency and reducing transportation costs.

Truckload Shipment

The transportation of goods where the quantity is sufficient to fill an entire truck, maximizing the vehicle's cargo capacity.

Less Than Truckload

A shipping method for transporting small freight loads that do not require the full space of a truck.