A Characteristic of Purchases Returns and Allowances Is

question 114

Multiple Choice

A characteristic of Purchases Returns and Allowances is:

• A)it has a normal credit balance.
• B)it increases when merchandise is returned.
• C)it decreases cost.
• D)All of the above are correct.

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Definitions:

Alternate Dividend Policy

A strategy employed by a company to distribute earnings to shareholders through dividends that may vary in amount and frequency depending on the company's earnings, investment opportunities, and capital needs.

Stock Repurchase

A financial transaction in which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

P/E Ratio

The price-to-earnings ratio, a valuation metric for stocks calculated by dividing the market value per share by its earnings per share.

EPS

Earnings Per Share, a measure of a company's profitability that is calculated by dividing its net income by the number of outstanding shares.