A Sales Discount Does Not

question 67

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:

Purely Competitive

A market structure characterized by many buyers and sellers, with all firms selling identical products and no single buyer or seller able to influence the market price.

Imperfectly Competitive

Referring to market structures that do not meet the conditions of a perfect competition, often characterized by a small number of sellers, product differentiation, or barriers to entry.

MP

Member of Parliament; an elected official to the national legislative body in many countries.

Haircuts

A reduction applied to the value of assets for purposes of calculating capital requirements, risk, or losses.