The Robinson-Patman Act Specifically Prohibits

question 238

Multiple Choice

The Robinson-Patman Act specifically prohibits:

• A)imposing taxes on the products that are being exported to other countries.
• B)earning excess profits, that is, more than the average for an industry.
• C)price discrimination in sales to wholesalers, retailers, and other producers.
• D)charging the same price to everyone for everything you sell.

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Definitions:

Bad Debt Expense Adjustment

An accounting entry to estimate and record the amount of accounts receivable that is not expected to be collected.

Accounts Receivables Turnover

A financial ratio that measures how often a company collects its average accounts receivable over a period.

Credit Sales

Sales transactions where payment is deferred, allowing customers to purchase goods or services on credit.

Receivables Turnover

A financial metric indicating how efficiently a company uses its assets by calculating the number of times average receivables are collected during a given period.