Arbitrage Is ________ in One Market and ________ in Another

question 27

Multiple Choice

Arbitrage is ________ in one market and ________ in another market.

• A) selling low; buying higher
• B) selling high; buying higher
• C) buying high; selling lower
• D) buying low; selling higher

---

Definitions:

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a reduction in sales revenue for the seller.

Bad Debt Expense

The cost to a company resulting from accounts receivable that are expected to be uncollectible and is considered an operating expense.

Sales Revenue

The income that a company receives from its normal business activities, usually from the sale of goods and services to customers.

Adjusting Journal Entry

An entry made in accounting records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.