Which Method of Quantifying a Solution Involves Calculating Savings as a Percentage

question 10

Multiple Choice

Which method of quantifying a solution involves calculating savings as a percentage of the original investment?

• A)SWOT analysis
• B)cost-benefit analysis
• C)value-savings calculation
• D)return on investment
• E)customer lifetime benefit

Understand the concepts of debit and credit balances in common accounts used in merchandising businesses.

Comprehend the process of recording merchandise returns and allowances.

Calculate sales amounts under different payment terms and discounts.

Distinguish between perpetual and periodic inventory systems and their impact on accounting records.

---

Definitions:

Revenue

Income that a company receives from its normal business activities, usually from the sale of goods and services to customers.

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thereby resetting the temporary accounts for the next period.

Withdrawal Account

An account that tracks the money taken out of a business by its owners for personal use.

Capital

Represents the financial resources used by a business to fund its operations and growth, often in the form of money, assets, or equity.