An Expense Resulting from Failing to Take Advantage of Cash

question 50

Multiple Choice

An expense resulting from failing to take advantage of cash discounts on purchases is called:

• A) Sales discounts.
• B) Trade discounts.
• C) Purchases discounts.
• D) Discounts lost.
• E) Discounts earned.

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Definitions:

Revenue Expenditures

Expenditures that are immediately charged against revenues in the period they are incurred, typically related to the maintenance and repair of assets.