Which of the Following Is NOT an Example of Mandatory

question 72

Multiple Choice

Which of the following is NOT an example of mandatory spending?

• A) farm price supports
• B) Social Security payments
• C) defense spending
• D) Medicare
• E) interest payments on the national debt

---

Definitions:

Sales Returns and Allowances

Transactions in which customers return damaged or unsatisfactory products for refunds or credit, and adjustments made to sales revenue for these returns or granted concessions.

Accounts Receivable

Outstanding payments from customers to a firm for delivered or utilized goods or services awaiting settlement.

Merchandise Return

The process whereby customers return previously purchased merchandise to the seller for a refund, store credit, or exchange.

Selling Expenses

Costs incurred directly and indirectly in selling a product, such as commissions, advertising, and promotional materials.