The Purchase Returns and Allowances Account Is Classified as

question 14

Multiple Choice

The Purchase Returns and Allowances account is classified as

• A) an asset account.
• B) a contra asset account.
• C) an expense account.
• D) a contra expense account.

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Definitions:

Risk Assessment

The identification, evaluation, and prioritization of risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events.

Internal Control

The processes and procedures implemented by a company to safeguard its assets, ensure accurate and reliable financial reporting, and promote compliance with laws and regulations.

Vulnerabilities Analysis

A process of identifying, quantifying, and prioritizing (or ranking) the vulnerabilities in a system, such as in information technology systems or energy supply systems.

Petty Cash

Petty cash refers to a small amount of cash on hand used for paying minor expenses in an organization to avoid writing checks for small amounts.