Reductions from the List Price That a Seller Gives a Buyer

question 44

Multiple Choice

Reductions from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller is called

• A)pretax price
• B)list price
• C)manufacturer's retail price
• D)manufacturer's cost
• E)discounts

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Definitions:

FIFO System

"First In, First Out," an inventory valuation method where goods first added to inventory are the first ones to be sold.

Straight Line Amortization

A method of allocating an asset's cost evenly across its useful life.

Fair Values

An estimate of the market value of an asset or liability based on current market prices or valuations.

Retained Earnings

The cumulative amount of profits that a company has earned, less any dividends or other distributions to shareholders over its life.