MGMT 200 - Chapter 5 Exam Questions and Answers Already Passed Latest Update 2025-
2026
An informal credit arrangement with a customer for payment to be received after the sale is
classified as a(n)
a. nontrade receivable.
b. note payable.
c. account receivable.
d. prepaid receivable. - Answers c
Sales to customers in which the customers pay within 30 to 60 days are referred to as (Select
all that apply.)
a. sales on account.
b. deferred sales.
c. nonaccrued sales.
d. credit sales. - Answers a, d
Net revenues is calculated as total revenues minus which of the following items?
a. Allowance for uncollectible accounts
b. Sales discounts
c. Accounts receivable
d. Sales allowances
e. Sales returns - Answers b, d, e
A trade discount is
a. an increase in the account receivable.
b. a percentage reduction from list price.
c. a rebate from the manufacturer.
d. a percentage reduction of the amount due for early payment. - Answers b
When merchandise is returned for a refund or for credit to be applied to other purchases, the
situation is called a(n) ________ ________. (Enter only one word per blank.) - Answers sales return
, The amount of cash owed to a company by its customers from the sale of goods or services is
referred to as
a. accounts payable.
b. accounts receivable.
c. a guarantee.
d. uncollectible accounts. - Answers b
When a business provides services to a customer, and the customer promises to pay later, this
is referred to as
a. operating sales.
b. cash sales.
c. credit sales.
d. current sale. - Answers c
A partial adjustment to the amount owed by the customer for goods that were not returned, but
did not fully meet the customer's expectations is referred to as a sales
a. discount.
b. debit.
c. allowance.
d. credit. - Answers c
Total revenues less discounts, returns, and allowances are referred to as ________ revenues.
(Enter only one word.) - Answers net
Which of the following is a discount in the amount to be paid if the customer pays within a
specified time period?
a. Purchase discount
b. Quantity discount
c. Trade discount
d. Sales discount - Answers d
A trade discount is a reduction from the list price, which is used to: (Select all that apply.)
2026
An informal credit arrangement with a customer for payment to be received after the sale is
classified as a(n)
a. nontrade receivable.
b. note payable.
c. account receivable.
d. prepaid receivable. - Answers c
Sales to customers in which the customers pay within 30 to 60 days are referred to as (Select
all that apply.)
a. sales on account.
b. deferred sales.
c. nonaccrued sales.
d. credit sales. - Answers a, d
Net revenues is calculated as total revenues minus which of the following items?
a. Allowance for uncollectible accounts
b. Sales discounts
c. Accounts receivable
d. Sales allowances
e. Sales returns - Answers b, d, e
A trade discount is
a. an increase in the account receivable.
b. a percentage reduction from list price.
c. a rebate from the manufacturer.
d. a percentage reduction of the amount due for early payment. - Answers b
When merchandise is returned for a refund or for credit to be applied to other purchases, the
situation is called a(n) ________ ________. (Enter only one word per blank.) - Answers sales return
, The amount of cash owed to a company by its customers from the sale of goods or services is
referred to as
a. accounts payable.
b. accounts receivable.
c. a guarantee.
d. uncollectible accounts. - Answers b
When a business provides services to a customer, and the customer promises to pay later, this
is referred to as
a. operating sales.
b. cash sales.
c. credit sales.
d. current sale. - Answers c
A partial adjustment to the amount owed by the customer for goods that were not returned, but
did not fully meet the customer's expectations is referred to as a sales
a. discount.
b. debit.
c. allowance.
d. credit. - Answers c
Total revenues less discounts, returns, and allowances are referred to as ________ revenues.
(Enter only one word.) - Answers net
Which of the following is a discount in the amount to be paid if the customer pays within a
specified time period?
a. Purchase discount
b. Quantity discount
c. Trade discount
d. Sales discount - Answers d
A trade discount is a reduction from the list price, which is used to: (Select all that apply.)
