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Which Is a Reason to Use the Net Method to Record

Question 22

Multiple Choice

Which is a reason to use the net method to record purchase discounts?


A) Cost-benefit factor is greater for the net method.
B) Reporting "purchase discounts lost" signifies inefficient business practices.
C) Given the materiality of the amounts involved,the net method is used.
D) The net method is technically superior to the gross method.

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