Discounts That Are Designed to Encourage Repeat Buying by a Single

question 166

Multiple Choice

Discounts that are designed to encourage repeat buying by a single customer over a given time period, such as a year, are referred to as

• A) promotional allowances.
• B) cumulative quantity discounts.
• C) cash discounts.
• D) functional discounts.
• E) noncumulative quantity discounts.

Identify the purposes of using an encumbrance system in budgeting and accounting for not-for-profit entities.

Apply knowledge of differences between not-for-profit organizations and business enterprises in financial reporting.

Analyze specific situations for not-for-profit organizations and recommend appropriate accounting treatments.

Prepare financial statements or partial statements capturing transactions for not-for-profit organizations.

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Definitions:

Continuing Operations

Part of a company's business that is expected to continue operating into the foreseeable future, excluding any discontinued operations.

Unusual Items

Nonrecurring or unique charges or gains that are not expected to happen regularly, such as costs from lawsuits, restructuring, or natural disasters, that are reported separately in a company's financial statements.

Accounting Principles

Principles that provide the framework upon which accounting standards are constructed.

Common-Sized Financial Statements

Financial statements that present all line items as a percentage of a common base figure, facilitating comparison across periods or companies.