Financial and Management Accounting

1: Which of the following statement is not correct in relation to cash discount?
A.
Cash discount is an allowance made by the person who receives cash to the payer for prompt payment
B.
Cash discount is an allowance in addition to the trade discount
C.
Cash discount is recorded in account books
D.
Cash discount is always allowed at a rate higher than the rate of trade discount
 

Answer : D

Explanation :

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Option: A

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