When a discount is given to the customers, it is a to the business entity and the value of capital will in the accounting equation.

gain

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loss

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increase

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decrease

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not change

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Solution

The correct options are
B loss
D decrease
When a discount is given to the customers, it is a loss to the business entity as they are receiving a lesser amount than the amount receivable. Since it is a loss, the value of capital will decrease in the accounting equation.

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