Sales Discounts and Sales Returns and Allowances Are Expense Accounts

question 43

True/False

Sales Discounts and Sales Returns and Allowances are expense accounts.

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Definitions:

Corporation

A legal entity owned by shareholders, with rights and liabilities distinct from those of its owners, and subject to corporate income tax.

AMT Income

Alternative Minimum Tax income calculates income with different rules than regular taxes, aiming to ensure taxpayers with high income pay a fair share of taxes.

Dividend Income

consists of payments received by shareholders from stocks or mutual funds, representing a share of the profits of the corporation or fund.

Taxable Income

The amount of an individual's income that is subject to taxation, after all deductions and exemptions.