The Sales Returns and Allowances Account Does Not Provide Information

question 145

Multiple Choice

The Sales Returns and Allowances account does not provide information to management about

• A) possible inferior merchandise.
• B) the percentage of credit sales versus cash sales.
• C) inefficiencies in filling orders.
• D) errors in overbilling customers.

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Definitions:

CPT

Current Procedural Terminology; a set of codes used by healthcare professionals to report and document medical, surgical, and diagnostic services.

ICD

International Classification of Diseases, a system of codes used for classifying diagnoses, symptoms, and procedures.

Upcoding

The fraudulent practice of using billing codes that indicate a more expensive service was performed than was actually provided, to increase reimbursement from Medicare or insurance.

Increased Revenue

An upward trend in the amount of money generated from the sales of goods or services within a company.