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:

Pitch Diameter

The diameter of an imaginary cylindrical surface delimited by the points where the teeth of a gear or thread profile make contact with the corresponding parts of another gear or thread.

Outside Diameter

The measurement of the distance across the widest point of a cylindrical or round object's exterior.

Root Diameter

The diameter at the bottom of a screw thread or gear tooth.

Pitch Diameter

The diameter of an imaginary circle on a gear, where the teeth effectively engage with the teeth of another gear.