Identify the Statement Below That Correctly Describes the Sales Returns

question 9

Multiple Choice

Identify the statement below that correctly describes the Sales Returns and Allowances account.

• A)It normally has a debit balance.
• B)It is a liability account.
• C)It is an expense account.
• D)It normally has a credit balance.

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Definitions:

Capital Account

An account on a country's balance of payments that records transactions involving the acquisition or disposal of assets and liabilities.

Income Distribution

The manner in which total income is spread amongst the shareholders, partners, or other stakeholders in a company or economy.

Net Income

The total profit of a company after all revenues, expenses, taxes, and dividends have been deducted.

Personal Use

Usage of an item or service solely for an individual’s needs and not for business or professional scenarios, emphasizing the non-commercial aspect.