Discount allowed is a kind of deduction from_____________?

Related Mcqs:

1. Discount allowed is___________?

   A. Expense of business
   B. Income of business
   C. Loss of business
   D. Abnormal loss of business

2. Cash discount is allowed on _______ repayment of debt.

   A. Lump sum
   B. Prompt
   C. Actual
   D. None of them

3. Discount received is a/an:

   A. Asset
   B. Expense
   C. Liability
   D. Revenue

4. Cash discount is provided on _______________?

   A. Purchases
   B. Prompt payment
   C. Sales
   D. Sales return

5. he term 2/10-n/30 implies that ______ % discount will be given if the payment is made within days or full amount is receivable within 30 days?

   A. 2,10
   B. 10,2
   C. 10,30
   D. 3,15

6. Discount for quick repayment of debt is normally referred as____________?

   A. Trade discount
   B. Prompt payment discount
   C. Cash discount
   D. Bulk discount

7. A discount of $2000 was given to a supplier on his prompt repayment of debt but the cashier entered the gross amount in cash book. What should be the adjustment in cash to work out the correct balance of cash book?

   A. $2000 will be debited in cash book
   B. $2000 will be credited in cash book
   C. $4000 will be debited in cash book
   D. $4000 will be credited in the cash book

8. Discount received is recorded on which of the following side of a cash book?

   A. Receipts
   B. Payments
   C. Incomes
   D. Expenditures

9. Cash book with cash and discount column is mostly referred as________?

   A. Simple cash book
   B. Two column cash book
   C. Three column cash book
   D. Petty cash book

10. A cash book with cash, bank and discount column is commonly referred as________?

    A. Cash book
    B. Two columns cash book
    C. Three columns cash book
    D. Petty cash book