Lesson 4.1: Discounting

Question 1

a way to reduce the price of an item or service. It is commonly used in business to encourage customers to buy more or to clear out old or slow-moving inventory. In accounting, discounting is also used to calculate the present value of future cash flows.

Answer 1

discounting

Question 2

formula for discounting

Answer 2

discount amount = original price x discount rate

Question 3

the original price of the item or service

Answer 3

original price

Question 4

the percentage of the discount

Answer 4

discount rate

Question 5

are commonly used in businesses to offer discounts to customers in the philippines

Answer 5

method of discounting and multiple discounting

Question 6

In this method, the discount is subtracted from the marked price or the list price of the item. The discount is calculated as a percentage of the marked price.

Answer 6

method of discounting

Question 7

In this method, multiple discounts are applied to the same item. This can be a combination of different types of discounts

Answer 7

multiple discounting

Question 8

in the multiple discounting method, multiple discounts are applied to the same item. This can be a combination of different types of discounts, such as:

Answer 8

quantity, loyalty, cash, and seasonal DISCOUNT

Question 9

how to calculate the multiple discounts

Answer 9

calculate the first discount; apply the second discount to the new price; apply any additional discounts