multiple choice

9. A discount given to a customer for purchasing a large volume of merchandise is typically referred to as a. Quantity discount b. Cash discount c Trade discount d. Size discount 10. Which of the following is false in relation to cash and trade discounts? a. Cash discounts are reductions in the invoice price allowed when payment is made within the discount period while trade discounts are reduction from the list price or catalog price in order to get the invoice price or amount actually charged to the buyer. b. Cash discounts are recorded but trade discounts are not recorded. c. The purpose of cash discounts is to encourage prompt payment while the purpose of trade discounts is to encourage trading or promote sales. d. Both purchases with trade and cash discounts should be recorded at net