The Use of a Purchase Discounts Account Implies That the Recorded

question 31

Multiple Choice

The use of a Purchase Discounts account implies that the recorded cost of a purchased inventory item is its

• A)invoice price plus any purchase discount lost.
• B)invoice price less the purchase discount taken.
• C)invoice price less the purchase discount allowable whether taken or not.
• D)invoice price.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the marketplace.