Reductions from List or Quoted Prices to Buyers for Performing

question 146

Multiple Choice

Reductions from list or quoted prices to buyers for performing some activity are referred to as

• A) allowances.
• B) subsidies.
• C) remittances.
• D) noncumulative deductions.
• E) list price deductions.

---

Definitions:

Profitability

Refers to a company's ability to generate income relative to its revenue, operating costs, and other expenses over a certain period.

Solvency

The ability of a business to meet its long-term debts and financial obligations.

Liquidity Ratio

A financial metric used to determine a company's ability to pay off its short-term liabilities with its available liquid assets.

Profitability Ratio

Financial metrics that are used to assess a business's ability to generate income relative to its revenue, assets, or equity.