Certain Industries Allow Full or Partial Refunds for Returned Inventory

question 308

Multiple Choice

Certain industries allow full or partial refunds for returned inventory.In such cases, which of the following is INCORRECT?

• A)The vendor retains the risks and rewards for those items expected to be returned.
• B)If returns can be reasonably predicted, then the goods may be considered sold by the
• Vendor and removed from inventory.
• C)If returns cannot be predicted, the sale is not recognized and the goods are not removed
• From inventory.
• D)If returns cannot be predicted, the sale is still recognized but the goods are not removed
• From inventory.

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Definitions:

Regret

A feeling of sadness, repentance, or disappointment over something that one has done or failed to do.

False Consensus Effect

The cognitive bias to overestimate how much others share one’s beliefs, attitudes, and behaviors.

Nonconformist

An individual who does not conform to conventional or mainstream rules or practices.

Illusion Of Control

The tendency for people to overestimate their ability to control events, leading to unrealistic expectations about the impact of their actions.