Sales Discounts and Sales Returns and Allowances Are Contra Revenue

question 23

True/False

Sales Discounts and Sales Returns and Allowances are contra revenue accounts that are debited to close the accounts during the closing process.

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Definitions:

Exponential Discounting

A process or model that describes how future benefits or costs are valued less as they are further in the future.

Interest Rate

The fraction of the borrowed amount a borrower needs to pay as interest to the lender.

Savings Account

A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.

Behavioral Economic Explanation

An interpretation derived from behavioral economics, focusing on psychological, social, and cognitive factors affecting economic decisions.