A(n) Is Prepared to Record a Reduction to an Unpaid

question 8

Multiple Choice

A(n) is prepared to record a reduction to an unpaid transaction between your company and a vendor.

• A) Refund Check
• B) Bill
• C) Vendor Credit
• D) Expense Transaction

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold before deducting overheads, payroll, taxation, and interest payments.

Accounts Receivable

Money owed to a company by its debtors for goods or services that have been delivered or used but not yet paid for.

Purchases

Merchandise for resale. It is a cost.

Departmental Gross Profit

The profit made by individual departments within a company, calculated by subtracting the cost of goods sold from the sales revenue generated by each department.