AFA4_Quiz5.docx - 1 Inventory is a current liability on the...

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1. Inventory is a current liability on the balance sheet. Select one: True False
2. Sales revenue minus sales returns and allowances and sales discounts equals: Select one:
3. Purchase returns of merchandise decrease the liability to a creditor. Select one:
4. Credit terms of 1/15 n/30 means the purchaser can deduct 1% of the invoice price if paid within 15 days. Select one:
5. Sales discounts is a contra account and has a normal credit balance. Select one: True False
6. When the seller is liable for the shipping costs, the payment for the freight in the seller's accounts is recorded with a debit to: Select one:
7. A merchandiser received payment in full after the expiration of the discount period on a

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