--%>
Assignment Help - homework help

Explain Discount

Briefly explain the term Discount and also describe their important types?

E

Expert

Verified

Discount is a method of rising the sale in which businessman decreases the price of goods and services that is paid by customer for buying the product. That decrease in price is termed as discount. It is just similar to the reward to customer to buy more. With this, business can promote their sales. There are lots of kinds of discount but two kinds are very important.

First is Trade discount that is provided on the list price. This is not recorded in the books of company.

Second is cash discount that is provided for getting cash rapidly from customers. This is recorded in the books of company by making discount permitted account.

   Related Questions in Financial Accounting

  • Q : Proceeds on disposal The following

    The following information is taken from the financial statements of an entity: 20x4 20x3 Property, plant and equipment $4,600,000 $4,200,000 Accumulated depreciation (1,800,000) (1,350,000) Depreciation expense 560,000 Gain on disposal of PPE 65,000 The asset disposed of had a cost

    		•
  • Q : Pricing spill-over effect Discuss

    Discuss pricing spill-over effect.

    		•
  • Q : Legal Reasoning and Writing This

      This exercise does not require you to do any research, and does not require you to cite to any references or external materials.  Do not include any constitutional arguments. Like many legal and policy questions

    		•
  • Q : Evaluating the cost of intangible asset

    How to evaluate the cost of intangible asset?

    		•
  • Q : Social issues & person statuses Think

    Think of person you will who often irritates you or whose behaviour greats on your nerves. First list that person statuses and role then analysed his or her possible role expectations, role performance, role conflict and role strai

    		•
  • Q : Characteristics of Composite currency

    State the characteristics of the Composite currency bonds market instrument.

    		•
  • Q : Advanced Accounting-Consolidated

    I have worked the problem. I need to know if it is correct. If not, what I'm missing.

    		•
  • Q : Average Profit Method in goodwill

    Average Profit Method: (Goodwill method): The profit earned by an organization throughout previous accounting periods on an average basis is termed as average profit. Goodwill is computed on the basis of average profit due to prospect expectations of

    		•
  • Q : Working capital what are the

    what are the disadvantages of having adequate working capital?

    		•
  • Q : Advantage of Historical Cost in

    What is the advantage of Historical Cost in Decision Making?

    		•