Asked by Kevin Chaffins on Jul 27, 2024
Verified
Most companies will not take a purchase discount, because 1% or 2% discounts are insignificant.
Purchase Discount
is a reduction in the price of goods bought, usually due to early payment by the buyer to the seller.
- Comprehend the methods for calculating purchase and sales discounts along with their influence on financial reports.
Verified Answer
HT
Haakan ThorsgardJul 30, 2024
Final Answer :
False
Explanation :
This statement is not always true. While some companies may not find a 1% or 2% discount significant, others may still choose to take advantage of the discount to reduce their overall costs. It ultimately depends on the individual company's financial situation and purchasing strategy.
Learning Objectives
- Comprehend the methods for calculating purchase and sales discounts along with their influence on financial reports.
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