Assuming the Perpetual Inventory System Is Used,which of the Following

question 46

Multiple Choice

Assuming the perpetual inventory system is used,which of the following statements about the multistep income statement is correct?

• A)Sales discounts affect the calculation of Gross Profit.
• B)Contra-accounts affect the Cost of Goods Sold.
• C)Contra-revenue accounts increase Other Expenses.
• D)Sales discounts are a Selling,General,and Administrative Expense.

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