Multiple Choice Questions on is an allowance or deduction made from the invoice price of goods sold ........ for Employee State Insurance Corporation (ESIC) Exam Preparation

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Principles of Accounting & Financial Management Employee State Insurance Corporation (ESIC) Exam

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Study Notes

    ......................is an allowance or deduction made from the invoice price of goods sold.

    trade discount 

    Correct Answer

    cash discount

    Incorrect Answer

    commission 

    Incorrect Answer

    none of these

    Incorrect Answer
    Explanation:

    Discount is the deduction in the price of the goods sold. It is offered in two ways. Offering deduction of agreed percentage of list price at the time of selling goods is one way of giving discount. Such discount is called as "Trade Discount".


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