How Do Purchase Returns and Allowances and Purchase Discounts Affect

question 162

Multiple Choice

How do purchase returns and allowances and purchase discounts affect gross purchases?

• A)Both are added to purchases.
• B)Both are subtracted from purchases.
• C)Purchase returns and allowances are added to purchases;purchase discounts are subtracted from purchases.
• D)Purchase returns and allowances are subtracted from purchases;purchase discounts are added to purchases.

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Definitions:

Dielectric Oil

A type of insulating oil often used to cool transformers.

Insulator

A material or device that resists the flow of electric current, used to prevent undesired current flow.

Cooling

The process of removing heat from an object or space, often to maintain a desired temperature.

Phase Current

The electric current flowing through one phase of a multi-phase system, like in three-phase electrical systems.