Quantity Discounts Are Discounts Offered to Encourage

question 48

Multiple Choice

Quantity discounts are discounts offered to encourage

• A) customers to buy in larger amounts.
• B) buyers to pay their bills quickly.
• C) buyers to buy later than present demand requires.
• D) excellent customer service.
• E) customers to buy sooner.

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Definitions:

FICA Tax

Federal Insurance Contributions Act tax, which funds Social Security and Medicare, charged to both employers and employees.

Federal Unemployment Tax

A tax paid by employers to fund the government's unemployment benefits.

Federal Unemployment Tax Rate

The rate at which employers are taxed by the federal government to fund the unemployment benefits and administrative costs of the federal unemployment insurance program.

Current Liabilities

Short-term financial obligations that are due within one year or within the company's operating cycle, whichever is longer.