What Is the Purpose of a Non-Posting Account

question 16

Multiple Choice

What is the purpose of a non-posting account?

• A)To calculate income.
• B)To track information necessary to the accounting information system.
• C)To calculate expenses.
• D)To identify owner's equity.

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Definitions:

Merchandising Companies

Businesses that purchase goods in finished form and resell them to consumers without further processing.

Purchases Discount

A reduction in price given by a seller to a buyer for paying an invoice within a specified time frame.

Early Payment

A payment made before its due date, often incentivized by discounts or to avoid interest charges.

Early Payment Discount

An incentive offered by sellers to buyers for paying their invoices before the due date, typically to accelerate cash flows.