Question

MARI
QUES NO.-233,
Reduction in the amount payable allowed by the seller of goods after the goods have been sold is:
a. Rebate
b. Cash discount
c. Trade discount
d. Discount allowed
a
b
с
d​

Answer 1

The correct option is b) cash discount

Explanation:

• In the field of business, a cash discount can be described as a type of discount which is offered to customers when goods are being sold. Hence, option b is correct.

• On the other hand, a trade discount is a type of discount that a retailer gives when a buyer buys goods in bulk amounts. This type of discount is offered to some loyal customers only.

Answer 2

Reduction in the amount payable allowed by the seller of goods after the goods have been sold is referred to as rebate.

• It is a specific form of purchasing discount, where a reasonable price is charged through effective means of gradual cut, or a repay paid retrospectively. It is a percentage charge to a potential customer of the entire retail price of a product.
• The accumulated number of transactions made over a certain period of time usually causes this charge.  
• For example - Someone paying full price for a mobile phone and sending in a form to receive 15 percent of what they paid back.