Which of the following is an example of an allowance? A) a dividend p

QUESTION

Which of the following is an example of an allowance?

A) a dividend paid to a single investor
B) a full refund given to a customer who returned his malfunctioning stereo
C) a store discount given to a customer who purchased a chipped mirror
D) a price paid for producing a certain amount of merchandise
E) a cost incurred for a specific operation of the business

ANSWER

Answer: C
Explanation: C) Allowances are partial refunds to customers for damaged products they choose to keep, not return.