What Is the Difference Between the "Old" and "New" Accounting

question 58

Multiple Choice

What is the difference between the "old" and "new" accounting procedures with respect to promotion? 

• A) Promotion expenditures are now treated in exactly the same fashion as advertising expenditures, namely, as current expenses that are deducted from top-line revenue. 
• B) Promotion allowances received by retailers are now considered taxable income. 
• C) Many promotion allowances are no longer considered legal. 
• D) Those sales promotions used as a form of price discount must now be treated as reductions in sales revenues. 
• E) The "new" accounting system actually inflates manufacturers' actual revenue.

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Definitions:

Accommodating Style

A conflict resolution approach where one party yields to the others' demands or wishes to maintain harmony and avoid confrontation.

Widely Accepted

Something that is generally recognized, approved, or agreed upon by a large group of people.

Interpersonal Conflict-Handling Styles

Refers to the various ways individuals address disputes and disagreements in personal and professional relationships.

Forcing

A conflict resolution style where one party aggressively pursues its own interests at the expense of others.