Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 30 - No. 45)
When a business receives a discount, what are the accounting impacts?
Decrease in Accounts Payable
Decrease in cost of goods sold.
Increase in cash paid.
Decrease in expenses
Explanation
Discounts received result in less being paid, therefore impacting accounts payable. The cost of goods sold is not affected, and the expense decreases.
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