Sales Returns

question 157

Multiple Choice

Sales returns:

• A) Refer to merchandise that customers return to the seller after the sale.
• B) Refer to reductions in the selling price of merchandise sold to customers.
• C) Represent cash discounts.
• D) Represent trade discounts.
• E) Are not recorded under the perpetual inventory system until the end of each accounting period.

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Definitions:

NCI Share

NCI Share refers to Non-Controlling Interest share, which is the portion of equity in a subsidiary not attributable directly or indirectly to the parent company.

Useful Life

The estimated period over which a tangible asset is expected to be usable by the entity, affecting its amortization or depreciation rate.

Tax Rate

The rate at which taxes are levied on a person or a business entity.

Depreciable Non-Current Asset

A long-term asset subject to depreciation, reflecting its wear and tear, obsolescence, or reduction in useful life over time.