Sales Returns and Allowances and Sales Discounts Are ________

question 12

Multiple Choice

Sales returns and allowances and Sales discounts are ________.

• A)contra-asset accounts and are netted against Accounts receivable on the balance sheet
• B)contra-expense accounts and netted against Cost of goods sold on the income statement
• C)expense accounts and added to Sales on the income statement
• D)contra-revenue accounts and netted against Sales on the income statement

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Definitions:

Test Statistic

A standardized value derived from sample data during a hypothesis test that is used to make the decision about the null hypothesis.

Test Statistic

A value calculated from sample data that is used to evaluate the validity of a hypothesis.

Significance Level

The threshold at which a result is considered statistically significant, typically set at a p-value less than 0.05.

Sample Variance

A measure of variance calculated from a sample of data, representing the average of the squared differences from the mean.