Which of the Following Are Subtracted from the Purchase Price

question 35

Multiple Choice

Which of the following are subtracted from the purchase price of the inventory to determine net purchases?

• A)Freight-out and freight-in
• B)Purchase returns, purchase allowances and freight-in
• C)Purchase returns, purchase allowances, and purchase discounts
• D)None of the above

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Definitions:

Conversion

The unauthorized act of taking or using someone's property as if it were one's own, thereby interfering with their rights.

Merger

The combination of two or more companies into one, where one survives and the others lose their corporate existence.

Compulsory Share Exchange

A mandatory transaction in which the shares of one company are exchanged for those of another, typically in the context of mergers and acquisitions.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make crucial decisions for a corporation.