--%>
Assignment Help - homework help

Explain Discount

Briefly explain the term Discount and also describe their important types?

E

Expert

Verified

Discount is a method of rising the sale in which businessman decreases the price of goods and services that is paid by customer for buying the product. That decrease in price is termed as discount. It is just similar to the reward to customer to buy more. With this, business can promote their sales. There are lots of kinds of discount but two kinds are very important.

First is Trade discount that is provided on the list price. This is not recorded in the books of company.

Second is cash discount that is provided for getting cash rapidly from customers. This is recorded in the books of company by making discount permitted account.

   Related Questions in Financial Accounting

  • Q : Random walk model for exchange rate

    Explain about random walk model for exchange rate forecasting. Will it be reliable with the technical analysis?

    		•
  • Q : Calculate the Present Value PV Given

    Given that the appropriate discount rate is 10% and that the first of these dividend payments will occur 1 year from now, find the present value of the dividend stream; that is, calculate the PV of D1, D2, and D

    		•
  • Q : Capitalize earnings To transfer amounts

    To transfer amounts from retained earnings to contributed capital through stock dividends. The effect is to decrease retained earning and increase the stock account. Stock dividends also permanently retain the earnings in the corporation by moving it out of the retain

    		•
  • Q : Bankruptcy A legal process that allows

    A legal process that allows a debtor, either a person or a business, to redundant some or all of the debt. The normal process involves selling asset and using the proceeds to pay off creditors in an order and/or in an amount determined by a judge. Some types of bankru

    		•
  • Q : Accounting and Financial Management

    Part A During 2012 the Australian Company Woolworths Ltd (WOW) sold its subsidiary business called Dick Smith Electronics. Within 8 months of the FOR SALE sign going up Anchorage bought the Dick Smith Business for $20 million. This is the same amount Woolworths Ltd bought

    		•
  • Q : Concessionary loan with APV model State

    State nature of the concessionary loan and explain how it is handled within the APV model?

    		•
  • Q : Historical Cost of Inventory What is

    What is the Historical Cost of Inventory?

    		•
  • Q : Trend of Gross profit of Company

    Describe the trend of Gross profit of Company?

    		•
  • Q : Leadership qualities required for

    Question Can one person in an organization make a difference? Write an essay on the leadership qualities required for running modern organizations <

    		•
  • Q : Abatement The process of allocating the

    The process of allocating the arrears of estate assets to the distributions. Distributions from the estate proceed in a particular order starting with specific legacies, effusive legacies, general legacies, and finally residuary legacies. If legacies assets are not capable to meet the will's prov

    		•