Customers with an RFM Score of 555 Are Highly Valued

question 35

True/False

Customers with an RFM score of 555 are highly valued by organizations.

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Definitions:

Merchandise Credit

A type of voucher issued by retailers to a customer when returned merchandise cannot be refunded in cash, used for future purchases.

Reversing Entries

Journal entries made at the beginning of an accounting period to negate or reverse certain adjusting entries made in the previous period for simplification.

Adjusting Entries

Adjusting entries are journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Unearned Rent

Income received for rent that has not yet been earned because the rental period has not taken place. It is recorded as a liability until the rent is earned.