ExamVeda
Login
Home

Cash discount is allowed on repayment of debt

This question belongs to Commerce Accounting
Accounting
?

Cash discount is allowed on ______ repayment of debt

Answer & Solution
Correct Answer: Option B
A cash discount is a reduction in the invoice amount granted by the seller to the buyer as an incentive for early payment.

This type of discount encourages buyers to pay their bills promptly to receive the discount.

Lump sum, Actual, and None of them are incorrect because they do not correctly describe the condition under which a cash discount is typically allowed.

Therefore, the correct answer is Prompt.
Examveda
Question posted by Examveda
Community

Join the Discussion

1 Comment
GANESH JUMDE
GANESH JUMDE 2 years ago
I THINK LUM SUM PAYMENT
Keep Learning

Related Questions on Accounting

Accounting provides information on
A. Cost and income for managers B. Company's tax liability for a particular year C. Financial conditions of an institutions D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets B. Fixed assets C. Intangible assets D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets B. Fixed assets C. Intangible assets D. Investments
Patents, Copyrights and Trademarks are
A. Current assets B. Fixed assets C. Intangible assets D. Investments
More Related Questions on Accounting