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:

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and certain rights within the company.

Share Exchange

A process in which some or all of the shares of one corporation are exchanged for some or all of the shares of another corporation, and both corporations continue to exist.

Holding Company

A company whose business activity is holding shares in another company.

Boards of Directors

Governing bodies elected by shareholders to make major decisions regarding a corporation's affairs, including setting strategies and overall management oversight.