What Is (Are)the Term(s)used to Describe a Discount Given to Encourage

question 113

Multiple Choice

What is (are) the term(s) used to describe a discount given to encourage prompt payment?

• A)Cash discount.
• B)Sales discount by the seller.
• C)Purchase discount by the buyer.
• D)All of these answer choices are correct.

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate or instrument.

Net Income

The total profit or loss of a company after all revenues, costs, and expenses have been deducted, often referred to as the bottom line.

Earnings Per Share

A financial metric that shows the portion of a company's profit allocated to each outstanding share of common stock.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the market capitalization remains the same.