Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

3. Accrual Accounting Concepts

Introduction to Adjusting Journal Entries and Prepaid Expenses

Financial Accounting

3. Accrual Accounting Concepts

Introduction to Adjusting Journal Entries and Prepaid Expenses

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which type of discount benefits a seller by encouraging earlier cash receipts and reducing collection efforts?

Trade discount

Sales discount

Purchase discount

Quantity discount

Previous problemNext problem

Verified step by step guidance

Understand the concept of discounts: Discounts are reductions in the price of goods or services, offered for various reasons such as encouraging early payment, bulk purchases, or promoting sales.

Define the types of discounts mentioned: Trade discounts are reductions in price offered to buyers in the trade or industry. Sales discounts are reductions offered to customers for early payment of invoices. Purchase discounts are reductions offered to buyers for early payment of their purchases. Quantity discounts are reductions offered for buying in bulk.

Focus on the seller's perspective: The question asks which discount benefits the seller by encouraging earlier cash receipts and reducing collection efforts. This implies the discount is tied to early payment of invoices.

Identify the correct discount type: Sales discounts are specifically designed to incentivize customers to pay their invoices earlier, benefiting the seller by improving cash flow and reducing the time and effort spent on collections.

Conclude the reasoning: Based on the definitions and the seller's perspective, the correct answer is 'Sales discount,' as it aligns with the goal of encouraging early payment and reducing collection efforts.