When a discount is given to speed up payments from the customers, it is called as .

cash discount

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trade discount

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credit discount

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discount received

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Solution

The correct option is A cash discount
Cash discount is a discount given to speed up payments from the customers. It is considered as an expense for the business and is recorded in the books of account.

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Similar questions

The ___ adds up all the various types of cash payments and receipts, including cash paid to suppliers, cash receipts from customers and cash paid out in salaries.

A shopkeeper marks his goods at $40 %$ above the cost price but allows a discount of $5 %$ for cash payment to his customers. What actual profit does he make, if he receives $R s . 1064$ after giving the discount?

Q. The marked price of a washing machine is

R s . 15, 450

. The shopkeeper allows a discount of

10 %

on cash payment. If the tax is

18 %

, find the amount the customer has to pay in cash to purchase it.

Q. An allowance given by receiver of the cash to the giver of cash at the time of payment is known as _____________ .

Q. Question : From the following information ascertain the opening balance of sundry debtors and closing balance of sundry debtors and closing balance of sundry creditors

	(Rs)
Opening stock	$30, 000$
Closing stock	$25, 000$
Opening creditors	$50, 000$
Closing debtors	$75, 000$
Discount allowed by creditors	$1, 500$
Discount allowed to customers	$2, 500$
Cash paid to creditors	$1, 35, 000$
Bills payable accepted during the period	$30, 000$
Bills receivable received during the period	$75, 000$
Cash received from customers	$2, 20, 000$
Bill receivable dishonored	$3, 500$
Purchases	$2, 95, 000$

The rate of gross profit is

25 %

on selling price and out of the total sales Rs

85, 000

was for cash sales.
( Hint Total sales =

4, 00, 000 = 3, 00, 000 \times \frac{100}{75}

)

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When a discount is given to speed up payments from the customers, it is called as .

The correct option is A cash discountCash discount is a discount given to speed up payments from the customers. It is considered as an expense for the business and is recorded in the books of account.

The correct option is A cash discount
Cash discount is a discount given to speed up payments from the customers. It is considered as an expense for the business and is recorded in the books of account.