The Most Theoretically Sound Method of Accounting for Cash Discounts

question 75

Multiple Choice

The most theoretically sound method of accounting for cash discounts on credit sales is the

• A)net price method
• B)discounted price method
• C)gross price method
• D)net present value method

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Definitions:

Target Population

The population for which statistical inferences such as point estimates are made. It is important for the target population to correspond as closely as possible to the sampled population.

Sampled Population

A subset of individuals or items selected from the larger population for the purpose of statistical analysis.

Population Parameter

A characteristic or measure that describes an aspect of an entire population, such as the mean or variance.

Sample Statistic

A numerical measure that describes an aspect of a sample drawn from a population.