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Because it creates a new source of revenue for them. All the little fine print for using them will state that.

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Q: Why does Discover Card send you blank checks to purchase something and then charges you 50.00 because you wrote the check. If you used your discover card for the purchase it didn't cost the 50.00.?
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Continue Learning about Accounting

Why purchase return is called income?

because when a purchase is returned money comes in


Is cash-back from purchases taxable with the IRS?

No, but... If you the cash back was paid for the purchase of an item that you are deducting (such as a business expense), then you have to reduce the deducted amount by the cash back paid for that item. Cash back payments are not taxable for their own sake, because you had to purchase something to get them, so they are just like discounts on the items purchased.


How do you stop paying taxes legally?

If you are an American, then here's one way: Find a job with a compay that sends you overseas, or be self-employed as a consultant working overseas. The first 80,000 bucks are tax free as far as the IRS is concerned.Other than that.... Good luck, and let us know what else you discover, because a lot of us would like to stop paying taxes. ;-(


What is the Nature of purchase account?

Purchase Account is a Real Account,because it fulfills condition of real account as Debit what comes In and in case of purchase goods come in that's why it's debited..


What is the important of contingent liabilities and commitment?

Knowledge of both contingencies and commitments is extremely important to users of financial statements because they represent the encumbrance of potentially material amounts of resources during future periods, and thus affect the future cash flows available to creditors and investors. Because of this, generally accepted accounting principles require that material contingencies and commitments be disclosed. The auditor has an obligation to discover the existence of such items to assure that they are properly disclosed in order to have complied with generally accepted auditing standards.

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