Which of the Following Is Correct Regarding Vendor Rebates

question 131

Multiple Choice

Which of the following is correct regarding vendor rebates?

• A) Vendor rebates are generally recorded as a reduction from sales.
• B) The rebate is never recognized until it is actually received.
• C) If the rebate meets asset recognition criteria, the receivable is allocated to goods sold.
• D) Vendor rebates are generally recorded as a reduction in the purchase cost of inventory.

---

Definitions:

Rehearsal

A practice session in preparation for a public performance (as of a play or speech) or a process in memory retention involving the repetition of information.

Short-term Memory

Is a cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.

Verbal

Pertaining to words and language, both spoken and written.

Retained Indefinitely

Refers to the process of keeping information, memories, or materials for an unlimited period without forgetting or disposal.