B215 Lesson 6 Preclass Microlearning Quizizz

_____ discount is given by a seller to a buyer at the point of sale to encourage bulk purchases.

____ discount a reduction in the invoice amount, given by the seller to the buyer to encourage prompt payment for a credit sale.

A wholesaler sells laptops to a retailer at a listed price of $1,000 each. The wholesaler offers the retailer a discount of 20% for purchasing more than 10 laptops. Identify the type of discount.

• Cash discount

• Trade discount

A supplier sells office furniture to a company. The total invoice amount is $5,000. The supplier offers a discount of 5% if the company pays the invoice within 10 days. Identify the type of discount.

• Cash discount

• Trade discount

Based on Financial Reporting Standards (FRS), which of the following condition(s) must be satisfied to recognise revenue?

• Transferred risk and reward of ownership to buyer

• Amount of revenue can be measured reliably

• Inflow of economic benefit is probable

• Amount of cost incurred or to be incurred can be measured reliably