Which of the Following Is a TRUE Statement About Sales

question 144

Multiple Choice

Which of the following is a TRUE statement about sales?

• A)Net revenue is gross revenue plus sales discounts less sales returns and allowances.
• B)Sales discounts are offered to customers in order to speed up cash flow.
• C)Sales returns and allowances increase a company's profit.
• D)Retailers do not generally record sales returns and allowances in a separate account.

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Definitions:

Import Competition

The competitive pressure on domestic companies from foreign products and services entering the domestic market.

Oligopoly

A market structure characterized by a small number of large firms that dominate the market, leading to limited competition and the potential for collaborative behavior.

Differentiated Product

A product that is distinguished from similar products offered by competitors through unique features, branding, or quality, allowing the company to potentially command a higher price.

Homogeneous Product

A product that is seen as identical across different producers, making consumers indifferent between brands based on the product itself.