Which of the Following Statements About Trade Discount Is NOT

question 7

Multiple Choice

Which of the following statements about trade discount is NOT true?

• A) Trade discount is an incentive for prompt payment.
• B) The amount allowed usually depends on the category of the customer or their normal volume of business.
• C) Most enterprises record only the net amount of the transaction.
• D) The actual price charged is adjusted by the amount of the trade discount.

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Definitions:

Satisfaction

The fulfilment of one’s wishes, expectations, or needs, or the pleasure derived from this.

Marginal Utility

The additional satisfaction or happiness gained from consuming an additional unit of a good or service.

Paint

A substance used to apply color or protection, consisting of pigment suspended in a liquid or paste medium such as oil or water.

Chicken

A type of poultry that is widely consumed around the world for its meat and eggs, and is considered a staple in many diets.