Which of the following statements is correct in relation to Trade Discount?

CS Executive · Corporate and Management Accounting · PYQS · December 2022
Which of the following statements is correct in relation to Trade Discount?
(A) Recorded in the books of accounts
(B) Calculated on invoice price
(C) Encourage prompt payment
(D) All of the above

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Accounting for Special Transactions

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic