Business, 26.09.2019 19:20 favre22fs

Sales returns which of the following statements is true relating to the allowance for sales returns? a. sales returns is treated as an expense in the income statement and, therefore, reduces profit for the period. b. an excess of the amount by which the allowance for sales returns is increased compared with the actual returns for the period indicates the company may have inflated profit for the period. c. the amount by which the allowance for sales returns is reduced during the period is recognized as a reduction of sales for the period, thus reducing profts. d. increasing the allowance for sales returns by an amount that is less than the actual returns recognized for the period may indicate either the company is attempting to increase profit for the period or its estimates that less of its products will be returned in the future.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 03:20

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out

Answers: 1

Answer

Business, 22.06.2019 15:20

Capital financial corporation will lend 90 percent against account balances that have averaged 30 days or less; 80 percent for account balances between 31 and 40 days; and 70 percent for account balances between 41 and 45 days. customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. the current prime rate is 16.50 percent, and capital charges 3.50 percent over prime to charming as its annual loan rate. a. determine the maximum loan for which charming paper company could qualify.

Answers: 1

Answer

Business, 23.06.2019 00:00

Both a demand curve and a demand schedule show how a. prices affect consumer demand. b. consumer demand affects income. c. prices affect complementary goods. d. consumer demand affects substitute goods.

Answers: 2

Answer

Business, 23.06.2019 02:40

Suppose that a government that is skeptical of efforts to regulate prices charged by private companies is nevertheless concerned that an electric utility company is taking advantage of consumers with unfair pricing policies. which of the following policy options might most effectively enable the government to achieve its objectives in this situation? do nothing to all. turn the company into a public enterprise. use antitrust laws to increase competition. regulate the firm's pricing behavior.

Answers: 3

Answer

You know the right answer?

Sales returns which of the following statements is true relating to the allowance for sales returns?...

Questions