Which of the Following Is a Correct Statement

question 20

Multiple Choice

Which of the following is a correct statement?

• A)Sales discounts are offered to compensate customers for unsatisfactory merchandise.
• B)Sales discounts are offered to encourage prompt payment by customers.
• C)Sales discounts may result in creating a liability Deferred Revenue.
• D)Sales discounts may result in creating an account Inventory-Estimated Returns.

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Definitions:

14th Century

The period extending from the year 1301 to 1400 in the Gregorian calendar, marked by significant historical events globally.

After World War II

The period following the end of the second global conflict in 1945, characterized by the establishment of the United Nations, the beginning of the Cold War, and significant social and economic changes worldwide.

Overdraft

An amount beyond what is currently in the account.

Bank Account

A financial account maintained by a bank or other financial institution for the deposit and withdrawal of money by the account holder.