Louisiana State University, Shreveport ACCT 701 Quiz 2 True/false questions 1)When companies offer trade discounts, the gross selling price (gross invoice price) at which the sale is recorded is equal to the list price minus any trade discounts?   Sells discounts arise when the seller offers the buyer a cash discount, typically 1 to 3 percent, to induce early payment of an amount due? Cost of Goods Sold = Beginning Inventory + Net Cost of Purchases -Ending Inventory? Beginning Inventory + Net Cost Of Purchases= Cost of Goods Available to Sale? A classified income statement has four major sections: operating revenues, cost of goods sold, operating expenses, and NonOperating revenues and accounts receivables? NonOperating revenues and expenses are revenues and expenses not related to the sale of products or services regularly offered for sale by a business? Two basic methods for estimating uncollectible accounts under the allowance method are the percentage of the cost of sales method and the percentage of receivables method? Liabilities result from some past transaction and are obligations to pay cash, provide services, or deliver goods at some time in the future? Generally, the lower the accounts receivable turnover, the better; and the shorter the average collection period, the better? Current liabilities are classified as clearly determinable, estimated, and contingent?