Reference no: EM132739272

Problem 1: What is the meaning of transportation in?

a. the expenses spent on carrying the returned goods from customers

b. the expenses spent on carrying the goods returned to suppliers

c. the expenses spent on carrying the goods sold to customers

d. the expenses spent on carrying the goods purchased from suppliers to the entity

Problem 2: Which of the following is not a reason for sales discounts to be offered to the debtors?

a. increase the amount paid by the debtors

b. improve the liquidity by turning the accounts receivable into cash

c. encourage earlier settlement of debts by debtors

d. reduce the level of bad debts