Question

Amount of discount deducted from invoice price is called a __________.

• A. cash discount
• B. trade discount
• C. quality discount
• D. all of the above

Answer 1

Answer: (B)

trade discount

Discount is the deduction in the price of the goods sold. It is offered in two ways. Offering deduction of agreed percentage of list price at the time of selling goods is one way of giving discount. Such discount is called as "Trade Discount".