What Are the Two Types of Statutory Agreements That May

question 46

Essay

What are the two types of statutory agreements that may be used to resolve tax disputes? Describe each one of them in detail.

---

Definitions:

Cash Discount

A deduction from the total amount on an invoice allowed by a vendor to encourage prompt payment.

Accounts Receivable

The money owed to a business by its clients for goods or services delivered but not yet paid for.

Sales Discounts

A reduction in the price of goods or services offered by a seller to a buyer, typically used to encourage prompt payment or to reward customers for bulk purchases.

Operating Expenses

Operating expenses refer to the costs associated with the day-to-day operations of a business, excluding cost of goods sold.