Like the Sherman Act, Section 3 of the Clayton Act

question 78

True/False

Like the Sherman Act, Section 3 of the Clayton Act applies only to practices involving commodities, not to those that involve services, intangibles, or land.

---

Definitions:

Periodic Method

An accounting approach used to value inventory and determine the cost of goods sold in which physical counts are done periodically, typically at the end of an accounting period.

Gross Method

An accounting method used to record purchases at the full invoice amount without deducting any cash discounts.

Defective Merchandise

Goods that are damaged or below quality standards, often leading to returns, exchanges, or adjustments in sales and accounting records.

Miscellaneous Accounts

Miscellaneous Accounts are ledger accounts that capture financial transactions not classified under specific account headings, often used for incidental or occasional transactions.