A Sales Discount Does Not

question 144

Multiple Choice

A sales discount does not

• A) provide the purchaser with a cash saving.
• B) reduce the amount of cash received from a credit sale.
• C) increase a contra-revenue account.
• D) increase an operating expense account.

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Definitions:

Marginal Utility

The extra pleasure or advantage obtained when consuming an additional unit of a product or service.

Utility Schedule

A table showing the different levels of satisfaction (utility) a consumer gets from consuming varying quantities of a good or service.

Utility Schedule

A representation that shows various quantities of a commodity or service and the utility or satisfaction derived from each.

Marginal Utility

The augmented satisfaction or value derived from the consumption of one extra unit of a product or service.