Asked by Hailey Horner on Jun 06, 2024
Verified
Which of the following would not be reported on the financial statements?
A) sales discount taken
B) trade receivables
C) trade discounts
D) sales discounts not taken
Trade Receivables
The amounts owed to the business by customers for products or services that have been delivered or used but not yet paid for.
Sales Discount
A reduction in the price of goods or services offered to customers, typically to prompt early payment or bulk purchases.
- Become familiar with the detailed aspects of accounting for sales returns, allowances, and discounts.
Verified Answer
AH
Abdul HazimJun 13, 2024
Final Answer :
C
Explanation :
Trade discounts are not reported on financial statements. They are used to adjust the listed price of products or services being sold to a customer. However, sales discounts taken and not taken as well as trade receivables are commonly included in financial statements.
Learning Objectives
- Become familiar with the detailed aspects of accounting for sales returns, allowances, and discounts.
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