Instructions : Choose the Word or Phrase in [ ]

question 17

Short Answer

Instructions : Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
Two-income families tend to [ save | spend ] what they earn.

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Definitions:

Net Method

An accounting method where discounts for early payment are anticipated and recorded as reductions of the cost of purchases or an expense.

Discount Period

The time frame in which a payment can be made at a reduced rate from the total invoiced amount, typically to encourage early payment.

Periodic Inventory System

An inventory accounting system where updates are made on a periodic basis, not continuously.

Discounts Lost

Represents the extra amount paid by a buyer above the early payment discount price, due to missing the discount period.