Using a Contra-Revenue Account for Sales Returns and Allowances Instead

question 17

Multiple Choice

Using a contra-revenue account for sales returns and allowances instead of directly reducing the sales account allows a retailer the following advantage:

• A)Increase profits by using accounting methods.
• B)Track the value of goods returned.
• C)Create more work for the accounting department.
• D)Increase sales by bringing more products.

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Definitions:

PLC System

A system used in industrial automation to control machinery and processes, consisting of programmable logic controllers.

MCR Instruction

Stands for "Master Control Reset", an instruction in PLC programming used to turn off a defined range of outputs when certain conditions are met.

Program Control

Program Control refers to mechanisms or methods employed within software to direct the flow of execution, determining the sequence in which various instructions or program elements are processed.

Frictional Unemployment

Unemployment that occurs when people transition between jobs, including graduates looking for their first job.