A trade discount is:
A: A term used by a purchaser to describe a cash discount given to customers for prompt payment.
B: A reduction in price below the list price.
C: A term used by a seller to describe a cash discount granted to customers for prompt payment.
D: A reduction in price for prompt payment.
E: Also called a rebate.
A: A term used by a purchaser to describe a cash discount given to customers for prompt payment.
B: A reduction in price below the list price.
C: A term used by a seller to describe a cash discount granted to customers for prompt payment.
D: A reduction in price for prompt payment.
E: Also called a rebate.
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- When a customer purchases merchandise inventory from a business organization, he may be given a discount, which is designed to induce prompt payment. Such a discount is called the . ( ) A: trade discount B: nominal discount C: enhancement discount D: cash discount
- A sales discount is: A: A reduction in price below the list price. B: Recorded as a credit of inventory account. C: Offered to the buyer for keeping damaged goods. D: Offered to encourage early payment from the buyer.
- A cash discount is best described as a reduction in the sum to be paid A: If payment is made within a previously agreed period B: If payment is made by cash, not cheque C: If payment is made either by cash or cheque D: If purchases are made for cash, not on credit
- We give 5% discount for ________________. A: cash settlement B: cash payment C: cash D: D/A payment
- A discount bond ( ). A: is also called a zero-coupon bond. B: is bought at a price below its face value C: its face value is repaid at the maturity date. D: is also called simple payment bond.