When Beth Purchased Diabetic Candy from a Catalog Retailer,she Was

question 20

Multiple Choice

When Beth purchased diabetic candy from a catalog retailer,she was sent orange- and lemon-flavored candy coated in dark chocolate.When she called to complain to the catalog retailer,she was told to keep the candy that was incorrectly sent to her,and that the company would immediately ship her the correct candy.This incorrectly sent candy would be listed as a(n) ________ on the operating statement for the catalog retailer.

• A)product return
• B)markdown
• C)amortized product
• D)liquidity error
• E)allowance

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Definitions:

Decision

The act of making a choice or coming to a conclusion.

Investment Turnover

A financial ratio that measures how effectively a company uses its assets to generate sales revenue; a higher turnover indicates better performance.

Profit Margin

The ratio of net income to revenue, indicating how much profit is generated per dollar of sales.

Return on Investment

A financial metric used to assess the profitability or efficiency of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.