Which of the Following Is the Practice of One Firm

question 79

Multiple Choice

Which of the following is the practice of one firm selling to another on credit terms?

• A) Accounts payable
• B) Accounts receivable
• C) Barter transactions
• D) Trade credit

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Definitions:

Operating Expenses

Expenses incurred from the normal operations of a business, excluding the cost of goods sold, such as rent, salaries, and utilities.

Sales Revenue

The income received by a company from its sales of goods or services before any costs or expenses are deducted.

Gross Profit Percentage

A financial metric that shows the portion of sales revenue that exceeds the cost of goods sold, expressed as a percentage.

Net Sales

The net income from sales a business secures, after subtracting the expenses for returned products, allowances for damaged or missing merchandise, and any granted discounts.