Quantity Discounts Lead to

question 64

Multiple Choice

Quantity discounts lead to

• A)a significant buildup of cycle inventory in the supply chain.
• B)a slight buildup of cycle inventory in the supply chain.
• C)a decrease in cycle inventory in the supply chain.
• D)minor fluctuations of cycle inventory in the supply chain.

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Definitions:

Allowance Account

A contra-asset account used to record adjustments to accounts receivable, reflecting the amounts expected not to be collected.

Uncollectible

Refers to accounts receivable that are considered to be uncollectable from debtors due to their inability to pay.

Credited

A term used in accounting to denote an increase in liabilities or equity accounts, or a decrease in assets or expense accounts.

Financial Assets

Assets that derive value from a contractual claim, such as cash, stocks, bonds, and bank deposits.