[amp_mcq option1=”Expense of business” option2=”Income of business” option3=”Loss of business” option4=”Abnormal loss of business” correct=”option1″]
The correct answer is: A. Expense of business.
A discount allowed is a reduction in the price of goods or services that is given to a customer. It is an expense of the business because it reduces the amount of revenue that the business receives.
An income of business is the amount of money that a business earns from its sales. A loss of business is when a business spends more money than it earns. An abnormal loss of business is a loss that is not expected to happen regularly.
Here are some examples of discounts allowed:
- A trade discount is a discount that is given to businesses that buy goods or services in large quantities.
- A cash discount is a discount that is given to customers who pay their bills promptly.
- A promotional discount is a discount that is given to customers to encourage them to buy goods or services.
Discounts allowed can be a significant expense for businesses. It is important for businesses to track their discounts allowed so that they can understand how they are affecting their bottom line.