--%>

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 : Stages in the life cycle of a family

    There are seven typical stages in the life cycle of a family with children. Fully explain and give an example to describe each of those seven stages.

  • Q : Factors influencing the value of

    Factors influencing the value of Goodwill: A) Proficient managementB) Quality of productC) Place of businessD) Accessibility of raw materialE) Positive contracts

  • Q : Matlab Applications in Control System

    Student faces a lot of difficulties in Matlab control system assignments and topics. If you are also having same issues and problems then www.tutorsglobe.com is the best available solution for you. We have highly skilled and experienced tu

  • Q : Define purchase budget Give a short

    Give a short introduction of the term ‘purchase budget’?

  • Q : Interest rate Give me answer of this

    Give me answer of this question. The prime interest rate usually: A) rises when the Federal funds rate rises. B) rises when the discount rate falls. C) falls when the Federal funds rate rises. D) falls when the Fed sells bonds in the open market

  • Q : Case study of a local public utility

    The local public utilities commission has been charged with inspecting and reporting utility problems in the area. They have three electrical inspectors and two gas inspectors, each available for 40 hours , to analyze structures in their respective areas of expertise.

  • Q : Relationship-To Look for in each other

    What is Relationship and what are the traits that make any relationship happy and committed forever ?

  • Q : Monetary approach to determine exchange

    Derive and explain monetary approach in order to determine the exchange rate.

  • Q : Major reasons of current account

    In contrast to the U.S., Japan has observed constant current account surpluses. What would be the major reasons for such surpluses? Is it advantageous to have constant current account surpluses?

  • Q : Implications of fixed and flexible

    Explain “balance of payments” identity and discuss some of its implications under the fixed and flexible exchange rate regimes.