Sales Returns and Allowances

question 89

Multiple Choice

Sales returns and allowances:

• A)are not included on most externally reported income statements.
• B)are offered as a way to encourage customers to make prompt payment.
• C)would include terms "2/15,n/60" which allows the customer to take a 15% discount if paid in 2 days.
• D)are included on external financial statements to allow investors to compare the company's results with industry standards.

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Definitions:

Flexible Working Hours

An arrangement that allows employees to vary their arrival and departure times, or choose their working hours, to accommodate personal needs and improve work-life balance.

Compressed Workweek

A work schedule that allows an employee to work a full-time job in fewer than the standard five days.

Work Sharing

An employment arrangement where two or more people share the responsibilities, hours, and benefits of a single full-time job.

Job Sharing

An employment arrangement where two or more individuals share the responsibilities, duties, and earnings of a single full-time job.