Percentage of concession in gross invoice amounts provided to encourage prompt payment are called _____.

Question

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Concessions in gross invoice amounts provided to encourage prompt payment are called trade discounts. Trade discounts are usually expressed as a percentage reduction in the gross invoice amount. They do not affect the accounting treatment of sales or revenue and are offered by the seller to the buyer. They are also referred to as cash discounts.

Percentage of Concession in Gross Invoice Amounts Provided to Encourage