The Discount from Entering a Line Discount in the Sales

question 11

Multiple Choice

The discount from entering a line discount in the sales journal -

• A) is applied immediately as a debit to the sales discount revenue account
• B) is applied when the invoice is paid
• C) is applied immediately to a separate linked line discount account
• D) is applied immediately to reduce the amount credited to the revenue account

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Definitions:

Expenses

Expenses are the outflows or the utilization of assets or incurring of liabilities during a period in the course of generating revenue.

Cash

A liquid asset representing currency or its equivalents that can be used immediately in transactions without any conversion or delay.

Services Rendered

The provision of work performed by one party for another in exchange for compensation.

Earning Revenue

Earning revenue refers to the total amount of money earned or income generated from a company's normal business activities before any costs or expenses are deducted.