Purchases Returns and Allowances

question 8

Multiple Choice

Purchases Returns and Allowances:

• A)decrease net income.
• B)increase net income.
• C)have no effect on net income.
• D)Not enough information provided.

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Definitions:

IRR

A metric used in financial analysis to estimate the profitability of potential investments, it represents the annualized effective compounded return rate.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and should not influence future business decisions.

Initial Period Cash

The amount of cash available at the beginning of a financial period or the start of a project.

Project Termination

The process of concluding or finalizing a project after its objectives have been achieved or it has been determined that objectives cannot be achieved.