All Transaction Data Are Classified by the Account They Affect

question 35

True/False

All transaction data are classified by the account they affect.

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Definitions:

Sales Returns

Transactions where customers return previously purchased merchandise for a refund, replacement, or credit toward future purchases.

Credit Sales

Sales made on credit, where the payment is received after the delivery of the goods or services.

Contra-Revenue

An account that offsets revenue accounts on the income statement, typically related to returns, allowances, and discounts.

Credit Sale

A transaction where goods or services are provided to a customer with the agreement that payment will be made at a later date.