Which of the Following Is a True Statement for a Company

question 107

Multiple Choice

Which of the following is a true statement for a company using a perpetual inventory system?

• A)Purchase returns and allowances is a contra-account to revenue.
• B)Sales returns and allowances is a contra-account to revenue.
• C)Purchase returns and allowances is a contra-account to accounts receivable.
• D)Sales returns and allowances is a contra-account to inventory.

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Definitions:

Main Term

The primary or most significant word or expression that describes the central concept in documentation, indexing, or searching of data.

Underlying Condition

A medical condition that preexists or contributes to the severity of another medical issue.

Hypertension

Hypertension is a condition characterized by consistently high blood pressure, which increases the risk of heart disease, stroke, and other health problems.

Neoplasm

An abnormal growth of tissue, which can be benign or malignant (cancerous).