Listed Below Are Five Terms Followed by a List of Phrases

question 54

Multiple Choice

Listed below are five terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided.
-_____ Deducted from list price.

• A)Credit sales
• B)Sales returns
• C)Sales allowances
• D)Sales discounts
• E)Trade discounts

---

Definitions:

Direct Method

A cash flow statement preparation technique that lists all major operating cash receipts and payments for the period.

Bonds

Financial securities that represent a loan made by an investor to a borrower, typically corporate or governmental.

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation and a claim on part of the company’s profits.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders in the form of cash.