Which statement is not correct?
A)"Purchase discount lost" is reported if the gross method is used.
B)Cut off means that obligations are reported in the proper accounting period.
C)Supplier discounts can be accounted for by using the gross method.
D)Trade payables are obligations for goods received or services used.

Question

Quizplus · Accepted Answer

"Purchase discount lost" is reported if the net method is used, not the gross method. In the gross method, the discount is not accounted for until it is actually taken, whereas in the net method, the discount is assumed to be taken and any loss from not taking the discount is reported as "purchase discount lost."

Which Statement Is Not Correct