Which of the following statements about trade discount is NOT true?
A) Trade discount is an incentive for prompt payment.
B) The amount allowed usually depends on the category of the customer or their normal volume of business.
C) Most enterprises record only the net amount of the transaction.
D) The actual price charged is adjusted by the amount of the trade discount.

Question

Quizplus · Accepted Answer

Trade discount is not an incentive for prompt payment; it is a reduction in the list price given to customers based on their category or volume of business, not related to payment terms.

Which of the Following Statements About Trade Discount Is NOT