Purchase Discounts does all of the following except:
A)Decrease cost of goods sold
B)Decrease net purchase purchases
C)Increases net income
D)Decreases ending inventory

Question

Quizplus · Accepted Answer

Purchase Discounts are a reduction in the purchase price of goods or services, which can be taken advantage of by paying the invoice amount within a specified time frame. This reduces the cost of goods sold and decreases net purchases, resulting in an increase in net income. However, it does not directly affect ending inventory. Therefore, option D is the correct answer as it is the only statement that is not true about purchase discounts.

Purchase Discounts Does All of the Following Except