Which of the Following Accounts Would NOT Be Affected If

question 9

Multiple Choice

Which of the following accounts would NOT be affected if a company failed to report returns of merchandise sold?

• A) Sales returns
• B) Sales allowances
• C) Cost of goods sold
• D) Inventory

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Definitions:

Interest Rates

The expense incurred when taking out a loan, usually shown as a percent of the total amount loaned.

Federal Funds Market

A U.S. financial market allowing banks to borrow and lend excess reserves to each other, usually overnight, at an interest rate called the federal funds rate.

Discount Window

The discount window is a central banking facility that allows financial institutions to borrow reserves, usually short-term, at a predetermined interest rate, to maintain liquidity.

Negative Excess Reserves

Refers to a situation where a bank's actual reserves fall short of the required reserves; although not typical, it would indicate financial stress or unusual circumstances.