Discount allowed is a kind of deduction from_____________?
Correct answer: B. Account receivable
- A. Account payable
- B. Account receivable
- C. Cash account
- D. Discount accountAccounting & Auditing
Explanation
Discount allowed is given to a customer, so it reduces the amount receivable from that customer. It is therefore deducted from accounts receivable, not from cash or accounts payable.
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
The other name of journal is____________?
A journal entry in which two or more account is debited or credited is referred as____________?
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?
Every business transaction affects at least ________ accounts?
The process of recording transactions in different journals is called_________?
General journal is a book of _______ entries?