One of the Unscrupulous Practices That Allows Parallel Importing to Function

question 42

Multiple Choice

One of the unscrupulous practices that allows parallel importing to function is when freight forwarders:

• A) buy black-market goods.
• B) send fake paperwork to manufacturers about the final destination of products they handle.
• C) double the price of goods to retailers.
• D) steal portions of a consignment.
• E) fail to pay their outstanding invoices in a timely manner.

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Definitions:

Control Account

An account in the general ledger used to summarize the details of a subservient ledger.

Subsidiary Accounts

Detailed records that support and summarize information in a controlling account, often used for individual items or customers.

Cash Refund

An amount paid by the seller to the buyer for merchandise that is defective, is damaged during shipment, or does not meet the buyer’s expectations.

Cash Payments Journal

The special journal in which all cash payments are recorded.