POA (Revision)

Which of the following relates to Trade discount? You may select more than 1 answer.

• Encourages customers to buy in bulk, their patronage and their loyalty.

• A reduction to the list price.

• Encourage credit customers to pay early, within a specified time.

• Not recorded in ledger account as only the invoiced price is recorded.

Cash discount encourages credit customers to pay _ _ _ _ _ , within a specified time.

Tags

CCSS.L.3.1A

CCSS.L.2.1E

CCSS.L.3.1G

The activities of a business are separate from the actions of the owner. All transactions are recorded from the point of view of the business. This refers to

• Accounting period theory

• Historical cost theory

• Accounting entity theory

• Going concern theory

Cash discounts are recorded as _____ and _____ in the ledger account.

• Cash Discount

• Discount Allowed

• Trade discount

• Discount Received

When credit customers pay early, the business gives cash discount to the credit customers. Hence, ____ is an expense to the business.

• Discount received

• Cash discount

• Discount allowed

• Trade discount

Discount ________ is when the business pays early and receives cash discount from its credit suppliers. Hence, it is an income to the business.

Tags

CCSS.L.3.1A

Which of the following is NOT a form of Business Ownerships

• Shareholder unlimited Company

• Limited Liability Partnership

• Sole Proprietorship

• Private Limited Company

Stakeholder: ___________ sell similar goods and/or services as the business.

Tags

CCSS.RI.7.2

CCSS.RI.8.2

CCSS.RL.7.1

CCSS.RL.8.1

CCSS.RL.9-10.2

Which of the following describes the owners and shareholders interactions with the business?

• Supply goods and/or services to the business.

• Enforce Tax Regulations

• Work for the business and perform executive duties.

• Contribute Capital to the business and expect profit distribution in return.

________ theory suggests that only business transactions that can be measured in monetary terms are recorded.