Which Type of Quantity Discount Is a Deduction from the List

question 147

Multiple Choice

Which type of quantity discount is a deduction from the list price that applies to a single order?

• A) Base discount
• B) Cumulative discount
• C) Noncumulative discount
• D) Cash discount
• E) Functional discount

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Definitions:

Faithful Representation

An accounting principle that financial statements should accurately reflect the underlying reality of a company's financial status.

Economic Condition

The state of the economy at a given time, including factors such as growth rates, unemployment levels, inflation rates, and market trends.

Accounting Procedures

Established methods and practices for recording financial transactions and maintaining financial records.

Supplemental Footnotes

Additional notes in financial statements that provide further details on the numbers presented in the main report.