Sales Discounts is a liability account.

Liability Account

An accounting record that holds the amounts owed by a company to creditors, suppliers, or lenders.

Clarify the definition of contra-revenue, contra-asset, and revenue accounts as they relate to sales transactions.

Verified Answer

Final Answer :

False

Explanation :

Sales Discounts is a contra revenue account, which means it reduces the total revenue from sales, not a liability account.

Learning Objectives

Clarify the definition of contra-revenue, contra-asset, and revenue accounts as they relate to sales transactions.