Which of the Following Is a Quantity Discount That Involves

question 46

Multiple Choice

Which of the following is a quantity discount that involves a one-time reduction in price?

• A) Cash discount
• B) Noncumulative quantity discount
• C) Trade discount
• D) Cumulative quantity discount
• E) Consumer discount

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Definitions:

Drawee

The party that is ordered to pay a draft or check. With a check, a financial institution is always the drawee.

Payee

The individual or entity to whom a payment is to be made or has been made, typically in the context of financial transactions.

Promissory Note

A written promise to pay a specified sum of money to a designated person at a fixed or determinable future time.

Debt

An amount of money borrowed by one party from another, often used for making big purchases that require immediate payment.