A trade discount is:
A) A reduction in price for prompt payment.
B) Also called a rebate.
C) A reduction in selling price below the list price.
D) A term used by a seller to describe a cash discount granted to customers for prompt payment.
E) A term used by a purchaser to describe a cash discount given to customers for prompt payment.

Question

Quizplus · Accepted Answer

A trade discount is a reduction in the selling price below the list price, typically offered by sellers to buyers in the same trade or industry, and is not related to payment terms.

A Trade Discount Is