Net Purchases + Purchases Returns and Allowances + Purchase Discount equals:

A) Net Loss.
B) Net Income.
C) Gross Profit.
D) Gross Purchases.

Answer: D

Business

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A static budget is appropriate in evaluating a manager's performance if

a) the company prepares reports on an annual basis. b) the company is a not-for-profit organization. c) actual activity closely approximates the master budget activity. d) actual activity is less than the master budget activity.

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Availability is mentioned in the text as a primary criterion for evaluating secondary data

Indicate whether the statement is true or false

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