Discount allowed is___________?
Correct answer: A. Expense of business
- A. Expense of business
- B. Income of business
- C. Loss of business
- D. Abnormal loss of business
Explanation
Discount allowed is the reduction granted to a customer for prompt payment, so it is treated as an expense or financial loss of the business. Discount received, in contrast, is income.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
Practise Accounting Principles
351 free Accounting Principles MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Accounting Principles questions
_________ is the evidence that a transaction took place?
Which of the following will be debited if a business purchases goods on credit?
Which of the following accounts will be debited if the business's owner withdraws cash from business for his personal use?
Goods returned by customer should be debited to which of the following accounts?
he term 2/10-n/30 implies that ______ % discount will be given if the payment is made within days or full amount is receivable within 30 days?
A journal entry in which two or more account is debited or credited is referred as____________?