Sales Returns and Allowances

question 66

Multiple Choice

Sales returns and allowances

• A)are accounted for by deducting the total amount from gross sales.
• B)are accounted for by deducting the total amount from net sales.
• C)are accounted for using a contra account called Trade Discounts.
• D)are accounted for using a reduction account.
• E)are not accounted for on the financial statements.

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Definitions:

Role Expectations

The anticipated behaviors and actions associated with a particular social position or status.

Situational Attribution

The process of attributing someone's behavior to external factors, such as the environment or circumstances, rather than to internal personality traits.

Dispositional Attribution

The tendency to attribute people’s behaviors to their inner characteristics such as personality, beliefs, or attitudes.

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting beliefs, ideas, or values at the same time.