Multiple Choice
Which one of the following statements regarding sales discounts is correct?
A) If a company offers a discount to encourage prompt payment and the discount is taken,the discount reduces the amount of net sales.
B) Credit terms of "2/10,n/30" means that if payment is made in two days,a 10% discount may be taken;if not paid within two days,the full invoice price will be due in thirty days.
C) The terms "sales discounts" and "purchase discounts" are used interchangeably by a company.
D) A sales discount is subtracted from Sales Revenue whereas a purchase discount is added to Cost of Goods Sold.
Correct Answer:
Verified
Correct Answer:
Verified
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