Reduction from the Invoice Price for Prompt Payment as Recorded

question 23

Multiple Choice

Reduction from the invoice price for prompt payment as recorded on the books of the seller

• A)Purchases discount
• B)Cash discount
• C)Trade discount
• D)Credit terms
• E)Cash payments journal
• F)Promissory note
• G)Cash receipts journal
• H)Credit Card Expense
• I)Credit period
• J)Sales discount

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Definitions:

Missing Funds

A situation where there is a discrepancy in accounting, indicating that money or assets are unaccounted for or lost.

Bank Statement

A document provided by a bank, detailing the transactions, balance, and other financial information in an account for a specific period.

Deposits In Transit

Funds that have been deposited by a company but have not yet been recorded by the bank.

NSF Check

A check that cannot be processed due to insufficient funds in the account it is drawn on, also known as a bounced check.