Determine the Equivalent Single Rate of Discount for the Following

question 100

Multiple Choice

Determine the equivalent single rate of discount for the following series of discounts. Discount of 20%, 15% and 5%.

• A) 35.4%
• B) 66.0%
• C) 2.85%
• D) 83.85%
• E) 28.5%

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting rules and standards for financial reporting used across the globe.

Direct Method

A cash flow statement preparation approach that lists major operating cash receipts and payments, providing a clearer view of a company's cash flow from operations.

Accrual Accounting

An accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.

Operating Cash Flows

Cash generated from a company's regular business operations.