Cash discount is a reduction in total price of goods and services for prompt payment.
Explanation:
It is given to enhance prompt payment and to discourage trade credit.
Let's assume a Company offers some certain percentage of discount for prompt payment. A goods cost #100,000 for instance. And then for payment within 10 days, 20% discount will be given, payment between day 11 to 15 days of purchasing the goods 15% discount and payment within 16 to 20 days attracts 10%. It means any customer who pays within the first 10 days of purchasing the goods get a discount of #20,000 (i.e 20% of #100,000), hence pays #80,000 for the good. A payment within day 11 to 15 of purchase gets 15% discount, so is allowed only #15,000 (i.e 15% of #100,000), so pays #85,000 while payment made within day 16 to 20 of purchase attracts only #10,000 discount (i.e 10% of #100,000), so he pays only #90,000. No discount will be given to payment made above 20 days of purchase and the full #100,000 will be paid.
Cash discount is also called Early payment discount
Answer:
The correct option is B
$400 unfavorable
Explanation:
Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.
It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price
pounds
Standard quantity allowed (5 × 1000) 5,000
Actual quantity <u> 5,200</u>
200 unfavorable
Standard price <u>×$2</u>
The quantity variance ($) <u>$400</u>unfavourable
Answer:
Option C is correct.
Explanation:
The McFadden Act which was passed by Congress in 1927 refers to a Federal legislation which ensured that authority was given to individual states to govern the bank branches that were located within the state.
The legislation also included national bank branches that were located within state lines.
This act was passed with the intention of allowing the national banks to compete with state banks by allowing them to open bank branches within state limitations.
True......................................
Gross Domestic Product The informal market transactions that create increases in production produced are not taken into account, which leads to an underestimation of the real quantity of output produced in an economy.
This is further explained below.
<h3>What is
Gross Domestic Product?</h3>
Generally, Gross domestic product (GDP) is a monetary measure of the total market value of a country's final products and services generated within a certain time period.
This metric undergoes numerous iterations before being regarded a trustworthy signal because of its complexity and subjectivity.
In conclusion, The Gross Domestic Product a method that, due to the fact that informal market transactions lead to increases in production created, estimates to be lower than the actual quantity of output produced by an economy.
Read more about Gross Domestic Product
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