Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 7 - No. 22)
How do trade discounts affect the amount of revenue recognized?
They increase the amount of revenue recognized.
They have no impact on the amount of revenue recognized.
They decrease the amount of revenue recognized.
They are recorded as a separate expense.
Explanation
Trade discounts reduce the selling price and, therefore, decrease the amount of revenue recognized.
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