Cash Discount and Trade Discount Quiz

What is the purpose of a trade discount?

• To encourage customers to purchase more goods or services from the supplier

• To calculate the cash discount percentage

• To reduce the amount owed by a customer to a supplier

• To record transactions in accounting records

How is a trade discount usually calculated?

• As a fixed amount per transaction

• As a percentage of the list price of the goods or services

• As a percentage of the cash discount

• As a percentage of the invoice amount

What is the purpose of a cash discount?

• To record transactions in accounting records

• To calculate the trade discount percentage

• To encourage customers to purchase more goods or services from the supplier

• To encourage customers to pay their bills promptly

How is a cash discount usually calculated?

• As a percentage of the trade discount

• As a percentage of the list price of the goods or services

• As a fixed amount per transaction

• As a percentage of the invoice amount

When does a customer get a cash discount?

• If they pay the full amount within 30 days

• If they choose not to take the trade discount

• If they purchase more goods or services from the supplier

• If payment is made within a specified period of time