Cash Discounts Are

question 35

Multiple Choice

Cash discounts are:

• A)Always calculated on list price
• B)Sometimes calculated with freight
• C)Sometimes calculated with returned goods
• D)Never calculated on freight and returns
• E)None of these

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Definitions:

Capitalized

The process of recording an expenditure as an asset on the balance sheet, rather than as an expense on the income statement, allowing for depreciation over time.

Amortized

The process of gradually reducing a debt through regular payments over a period.

Financial Statements

A set of formal records that quantitatively describe the financial activities and position of a business, person, or other entity.

Affiliated Organizations

Entities that are directly or indirectly controlled by, or under common control with, another entity.