The Important Point of Discounting Is That It Matters When

question 7

True/False

The important point of discounting is that it matters when you get your money and not just how much you will be getting.

---

Definitions:

Beginning Inventory

The value of all inventory held by a company at the start of an accounting period.

Merchandise Inventory

Goods that a retail or wholesale company intends to sell to customers for a profit, listed as a current asset on the balance sheet.

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within a year or the operating cycle, whichever is longer.

Gross Margin Ratio

A fiscal gauge that assesses the amount of profit remaining from sales once the expenses for producing the goods have been subtracted.