Sales Is A(n)________ Account

question 23

Multiple Choice

Sales is a(n) ________ account.

• A)asset
• B)liability
• C)revenue
• D)contra-

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Definitions:

Cash Discount

A reduction in the invoice price offered by sellers to buyers as an incentive for early payment within a specified period.

Perpetual Inventory System

An inventory accounting system that records purchases and sales of goods instantly through computer systems, providing a continuous record of inventory levels.

Inventory Shrinkage

The loss of products between procurement and sale, often due to theft, damage, or administrative errors, affecting inventory levels.

Sales Discounts

A reduction in the price of goods or services offered to customers, typically as an incentive to encourage prompt payment.