The contra revenue account that represents the reduction in the amount paid by a credit customer if payment is made within a specified period of time is known as which of the following: O Contra revenue account Sales allowance account Sales discount account O Allowance for uncollectible accounts 4

Accounting Nov 29, 2020

The contra revenue account that represents the reduction in the amount paid by a credit customer if payment is made within a specified period of time is known as which of the following: O Contra revenue account Sales allowance account Sales discount account O Allowance for uncollectible accounts 4.75 pts D Question 2 What is gross profit? The calculation of sales revenue less cost of goods sold. The calculation of total revenues less any discounts, returns, and allowances. The calculated difference between total accounts receivable and the allowance of uncollectible accounts. The calculation of original cost of a long-term tangible asset less accumulated depreciation
Question 3 4.75 pts Allocating an equal amount of depreciation expense to each year of the asset's service life is known as which of the following: Double declining balance depreciation calculation Intangible asset Straight line depreciation calculation Residual (Salvage) value 4.75 pts Question 4 The "Cost of goods sold" account is associated with which of the following major categories? Revenue O Expenses Stockholders' Equity Asset Liability
Question 5 4.75 pts The "Sales allowance" account is associated with which of the following major categories? O Expenses Liability O Asset Stockholders' Equity Revenue
Question 7 4.75 pts What is the concept behind separation of duties in internal controls? o Duties of middle-level managers should be clearly separated from those of top executives The external auditors of the company should have no contact with managers while the audit is taking place The company's financial accountant should not share information with the company's tax accountant Employee fraud is less likely to occur when access to assets such as cash is handled by one employee and access to the accounting records is handled by another employee

Expert Solution

Question - 1). OPTION - SALES DISCOUNT.

Sales discount means the reduction in the amount paid by the credit customers If the payment is made within the specified given period.

Question- 2.OPTION - Calculation of total sales Revenue less cost of goods sold.

Gross Profit = Sales Revenue less Cost of goods sold.

Question- 3.Straight Line Depreciation Calculation.

Straight line Depreciation method allocates an equal amount of Depreciation over the service life of the asset.

Question- 4.Expense.

Cost of goods sold is associated with the Expenses.

Question- 5. Revenue.

Sales allowance is associated with the category of Revenue.

Question- 7. Employee fraud is likely to occur when access to Assets such as cash is handed by one employee and access to accounting records is handled by another employee.

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