For What Reason Do Most Sellers Require Customers to Have

question 183

Multiple Choice

For what reason do most sellers require customers to have their receipts in order to exchange or return purchased items?

• A)The receipt contains coded information that the seller needs to prepare and analyze the trial balance.
• B)Sellers wish to ensure that the sale in question was rung up on the register in the first place.
• C)This is a legal requirement mandated by a federal law.
• D)The receipt is serving as a promissory note.
• E)To create an environment in which customers do not want to return items.

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Definitions:

Unearned Revenue

Money received by a company for goods or services yet to be provided, considered a liability until the service or product is delivered.

Liability

Financial obligations or debts that a company owes to others, reflected on the balance sheet.

Drawing Account

An account used to record withdrawals of cash or other assets by the owner for personal use, reducing owner's equity.

Expense

An expense refers to the money spent or cost incurred in an entity's efforts to generate revenue representing the cost of doing business.