Which of the Following Statements Is True

question 130

Multiple Choice

Which of the following statements is true?

• A)Only cash sales are included in the Sales account.
• B)Sales is the total amount charged customers,including cash sales and sales on account.
• C)Both sales discounts and sales returns and allowances are added to Sales to arrive at Net Sales.
• D)Sales is the revenue account typically used in service businesses.

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Definitions:

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, reflecting preferences and utility maximization.

Price Increase

Refers to a situation where the cost of goods or services rises over a period of time.

Total Utility Data

Information that represents the total satisfaction received from consuming a certain amount of goods or services.

Money Income

The total amount of monetary earnings or receipts accruing to an individual or household before taxes and other deductions.