When a Buyer Pays a Lower Price for Buying in Multiple

question 91

Multiple Choice

When a buyer pays a lower price for buying in multiple units or above a specified dollar amount,the buyer is receiving a:

• A) functional discount
• B) cash discount
• C) rebate
• D) promotional allowance
• E) quantity discount

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Definitions:

Interest Revenue

Income earned on investments or money lent, represented by the amount charged to borrowers for the use of the lender's funds.

Elimination

In accounting, the process of removing intercompany transactions from the financial statements of a consolidated group.

Consolidated Financial Statements

Financial reports that aggregate all financial information of a parent company and its subsidiaries, showing the group's overall financial performance and position.

Parent's Share

The portion of equity interest in a subsidiary held by the parent company, reflecting its claim on the subsidiary's assets and income.