Which of the Following Statements About Revenues and Expenses Is

question 112

Multiple Choice

Which of the following statements about revenues and expenses is correct?

• A)Credits increase both revenues and expenses.
• B)Credits increase expenses and decrease revenues.
• C)Credits increase revenues and decrease expenses.
• D)Credits decrease both revenues and expenses.

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Definitions:

Discount Period

The time frame in which a payment can be made at a reduced rate from the total invoiced amount, typically to encourage early payment.

Periodic Inventory System

An inventory accounting system where updates are made on a periodic basis, not continuously.

Discounts Lost

Represents the extra amount paid by a buyer above the early payment discount price, due to missing the discount period.

Partial Payment

A payment that is made towards a debt or invoice that is less than the full amount owed at the time of payment.