A discount given to encourage prompt payment is called:Multiple ChoiceОa cash discount.all of these answer choices are correct.a sales discount by the seller.a purchase discount by the buyer.

Cash discounts are like a reward for paying your bill quickly. Here's a breakdown:What it is:A price…

Answered: A discount given to encourage prompt…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 1TP: Conduct research on a real-world retailers trade discounts and policies, and discuss the following...

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Similar questions

When offered with single trade discounts, discount series, and cash discount, would you avail of them right away? Why and why not ?
The cash discount (also known as purchase discount) is given to customers for a. Frequent purchases b. Bulk purchase c. Early and prompt payments d. Frequent sales
types of discounts is given to the buyer if the buyer makes a bulk purchase ?
(True / False) A purchases discount can be referred to by the buyer as discount received.
Which one of the following types of discounts is given to the buyer if the buyer makes a bulk purchase;
The objective of is to encourage the buyer to purchase in large quantities and to increase the level of sales. a. Mark-up b. Cash discount c. Trade discount d. Margin
Terminology Match each phrase with its definition. A. Sales discount B. Credit period C. Discount period D. FOB destination E. FOB shipping point F. Gross profit G. Merchandise inventory H. Purchases discount 1. 2. 3. 4. 5. 6. 7. 8. Goods a company owns and expects to see to its customers. Time period that can pass before a customer's full payment is due. Seller's description of a cash discount granted to buyers in return for early payment. Ownership of goods is transferred when the seller delivers goods to the carrier. Purchaser's description of a cash discount received from a supplier of goods. Difference between net sales and the cost of goods sold. Time period in which a cash discount is available. Ownership of goods is transferred when delivered to the buyer's place of business. 1
Kate Trading made an early payment to its suppliers to take advantage of the discount offered by the supplier. What account is most likely used for the discount that is being acquired by Kate Trading? cash discount trade discount sales discount purchase discount
Sellers use two methods in practice that simplify the process of recording sales discount. What are these methods of sales discount?
If any discount is offered for early payment of invoice will be called as a. Cash discount b. Trade discount c. No discount d. Any discount
Enter the letter for each term in the blank space beside the definition that it most closely matches. A. Sales discount D. FOB destination G. Merchandise inventory B. Credit period E. FOB shipping point H. Purchases discount C. Discount period F. Gross profit 1. Goods a company owns and expects to sell to its customers. 2. Time period that can pass before a customer’s full payment is due. 3. Seller’s description of a cash discount granted to buyers in return for early payment. 4. Ownership of goods is transferred when the seller delivers goods to the carrier. 5. Purchaser’s description of a cash discount received from a supplier of goods. 6. Difference between net sales and the cost of goods sold. 7. Time period in which a cash discount is available. 8. Ownership of goods is transferred when delivered to the buyer’s place of business.
Select the correct choice that completes the sentence below. The cost of an item if the full amount had been paid at the time of sale is called the O A. down payment price O B. installment price O C. total price O D. cash price

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A discount given to encourage prompt payment is called: Multiple Choice О a cash discount. all of these answer choices are correct. a sales discount by the seller. a purchase discount by the buyer.