Sales Discounts and Sales Returns and Allowances Are Contra-Revenue Accounts

question 72

True/False

Sales Discounts and Sales Returns and Allowances are contra-revenue accounts.

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Definitions:

Operating Needs

The essential requirements necessary for a business to maintain and grow its operations, including working capital, equipment, and inventory.

Sales Revenue

Money a company makes from its merchandise sales or services rendered.

Service Charge Expense

Service charge expense refers to fees charged for specific services provided, often recognized as an expense in accounting records.

Accounts Receivables

Sums due to a company from its clients for products or services provided but not yet compensated for.