Which Is True Concerning Multiple Sales Accounts

question 61

Multiple Choice

Which is true concerning multiple sales accounts?

• A) Companies may not use multiple sales accounts; all sales are recorded in one Sales Revenue account.
• B) Companies may use multiple sales accounts; if they do they must report each sales account as a separate item in the income statement.
• C) Companies may use multiple sales accounts; if they do they can report as a single Sales Revenue amount in the income statement, but must disclose the separate Sales Revenue amounts elsewhere.
• D) Companies may use multiple sales accounts; if they do they generally report a single Sales Revenue amount in the income statement, and do not disclose the separate Sales Revenue amounts elsewhere.

---

Definitions:

Economic Significance

The importance or impact of an economic activity or phenomenon in terms of its effects on the overall economy, such as employment levels or GDP.

Exchange

The act of trading goods, services, currencies, or other items of value between parties.

Comparative Advantage

The ability of an individual or country to produce a good or service at a lower opportunity cost than competitors.

Production Possibilities Curve

A graph that shows the combinations of two goods that an economy can produce using all its resources efficiently.