Franchises Are Privileges Granted by a Business to Sell Goods

question 61

True/False

Franchises are privileges granted by a business to sell goods and services under specified conditions.

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Definitions:

Sales Discounts

A reduction in the price of goods sold, offered by the seller to the buyer, often to encourage prompt payment.

Periodic Inventory System

A method of inventory valuation for financial reporting purposes where a physical count of all inventory is performed at specific intervals to determine the level of inventory and the cost of goods sold.

Net Method

An accounting method that records purchases or sales of goods and services after deducting any discounts, returning the net amount.

Credit Terms

The payment conditions set by a seller for the buyer, including the period allowed for payment and any cash discount for early payment.