chapter 2 Flashcards
1
Q
credit transaction
A
a financial transaction where no money changes hands at the time of transaction
2
Q
trade receivable
A
a customer that owes the business money
3
Q
trade payable
A
a supplier to whom the business owes money
4
Q
trade discount
A
a reduction in selling price of goods made by one trader to another. given as a percentage reduction from the normal price of a product.
5
Q
cash (or settlement) discount
A
an allowance given by a seller to a customer to encourage the customer to pay before due date for payment
6
Q
discounts allowed
A
cash discounts allowed to the customer of goods for prompt payment
7
Q
discount recieved
A
cash discounts received from the supplier of goods for prompt payment
