[amp_mcq option1=”Goodwill” option2=”Special Discount” option3=”Trade Discount” option4=”Cash Discount” correct=”option1″]<\/p>\n
The correct answer is: A. Goodwill<\/strong><\/p>\n Goodwill is an intangible asset that arises when a company acquires another company for more than the fair value of its net assets. It is not recorded in the books of account because it is not considered to be a tangible asset.<\/p>\n Trade discount is a reduction in the price of goods that is offered to customers who purchase a certain quantity of goods. It is recorded in the books of account as a reduction in the cost of goods sold.<\/p>\n Special discount is a reduction in the price of goods that is offered to customers for a limited time period. It is recorded in the books of account as a reduction in the cost of goods sold.<\/p>\n Cash discount is a reduction in the price of goods that is offered to customers who pay their invoices within a certain time period. It is recorded in the books of account as a reduction in accounts receivable.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Goodwill” option2=”Special Discount” option3=”Trade Discount” option4=”Cash Discount” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-51619","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n