The Sales Discounts Account Is a Contra Account to the ________

question 44

Multiple Choice

The Sales Discounts account is a contra account to the ________ account.

• A)Purchases
• B)Sales Revenue
• C)Merchandise Inventory
• D)Sales Returns and Allowances

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Definitions:

Cost Flow Assumption

An accounting method that determines the value of remaining inventory and the cost of goods sold, such as FIFO or LIFO.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to some numbers more than others.

FOB Shipping Point

This term indicates that the buyer is responsible for the goods and their shipping costs as soon as the goods leave the seller's premises.