When Sherman Bought Gas,he Noticed the Convenience Store Offered Him

question 154

Multiple Choice

When Sherman bought gas,he noticed the convenience store offered him a 2 percent reduction in price if he paid cash rather than if he used his credit card to pay for his purchase.The convenience store was offering him a

• A)trade discount.
• B)cash discount.
• C)promotional allowance.
• D)rebate.
• E)functional discount.

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Definitions:

Trade Receivables

Amounts owed to a company by its customers as a result of delivering goods or services on credit.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Face Value

The nominal or dollar value printed on a security such as a bond or stock, representing its legal value.

Note

A financial instrument acknowledging debt, with terms including interest rate and repayment schedule.