A Form Used by Business to Inform Customers That Their

question 45

Multiple Choice

A form used by business to inform customers that their account balance has been reduced is:

• A) Debit Memorandum
• B) Credit Memorandum
• C) Adjustment Memorandum
• D) Sales Return and Allowance Memo

---

Definitions:

Weighted-Average Method

An inventory costing method that averages the cost of all similar goods available during the period.

Periodic Inventory

An inventory system where the inventory count and cost of goods sold calculations are conducted at specific intervals.

FIFO

FIFO (First-In, First-Out) is an inventory valuation method where goods first purchased or produced are the first ones sold.

Periodic

Occurring or repeating at regular intervals.