The Purchases Returns and Allowances Account Is Described as a C__________

question 41

Short Answer

The purchases returns and allowances account is described as a c__________ expense account as it is always deducted from purchases in the financial reports.

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Definitions:

Net Working Capital

The disparity between an organization's immediate assets and liabilities, showcasing its financial stability in the short-term.

Accounts Payable

Short-term liabilities or the money a company owes to suppliers or vendors for goods and services that were purchased on credit.

Inventories

Quantifiable goods or materials that a business holds with the intent of selling them in the course of business operations, constituting a significant portion of a company's assets.

Credit Terms

Conditions under which credit will be extended to a borrower, detailing repayment amounts and the timeframe of repayment.