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.

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.

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.

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.