PRC-1 · Chapter 10 · Question 73 of 100
Which of the following describes the nature of 'Discount Received'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) It is an income or cost reduction received from suppliers for early payment.
Explanation
Discount received is a settlement discount granted by suppliers. It reduces the amount payable and is recorded as other income or a deduction from purchases.
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