Advertising or Display Materials Set Up at Retail Locations to Promote

question 82

Multiple Choice

Advertising or display materials set up at retail locations to promote products to potential customers as they are making their purchase decisions are called ________.

• A) rebates
• B) trade allowances
• C) point-of-purchase displays
• D) specialty advertising
• E) coupons

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the United States to ensure financial statements are consistent and comparable.

Freight-out

The cost associated with transporting goods from the seller to the buyer, usually considered a selling expense.

Purchase Returns

Goods returned to the supplier from the buyer, often due to defects or other reasons for dissatisfaction.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, carried over from the previous period's closing inventory.