Intrusion-prevention systems (IPS) actively block unauthorized ...

[karateprodigy]

Intrusion-prevention systems (IPS) actively block unauthorized traffic using rules specified by the organization.
  Indicate whether the statement is true or false

Question 2

Tiny Toy Company makes toys and sells them to retail stores on account. The company has a December 31 year-end. In the past, Tiny Toy always sold on account but never offered sales discounts to its customers.
 
  However, this year on November 1, the beginning of the holiday sales season, Tiny Toy began offering stores terms of 2/90, n/120. The stores can return anything, no questions asked, but only AFTER December 31.
  Required:
  A. Why would Tiny Toy offer such a liberal credit and return policy?
  B. Put an X in the appropriate box to describe the effect of this credit and return policy on Tiny Toy's financial statements for this year.
 
  Financial statement item Increase Decrease No effect
  Sales
  A/R
  Inventory
 
  C. Is Tiny Toy's new credit and return policy ethical?
 
  What will be an ideal response?

[Beatricemm]

Answer to Question 1

T

Answer to Question 2

A. Tiny Toy is trying to increase sales for this year by encouraging customers to order extra merchandise, which may well be returned after December 31. (NOTE: Principles students don't know about creating an allowance for returns.

B.
Financial statement item Increase Decrease No effect
Sales X
A/R X
Inventory X

C. No. Tiny Toy is encouraging stores to buy merchandise now that they don't have to pay for yet, and can easily return in the next fiscal year. This is an attempt to make Tiny Toy look more successful than it really is.