Question #1: Debtor Control Accounts and Creditor Control Accounts refer to data

Question

Question #1: Debtor Control Accounts and Creditor Control Accounts refer to data from the Sales and Purchase Ledger.

True

False

Question #2: SETTLEMENT DISCOUNT is sometimes offered to a customer for prompt payment of the invoice.

True

False

Question #3: Trade Discounts are usually offered to a customer based on regular purchasing the goods.

True

False

Question #4: A Receipt is an acknowledgement that payment has been received.

True

False

Question #5: A Receipt is sent from the customer to the supplier and reduced the amount a supplier owes to the customer.

True

False

Explanation / Answer

Answers:

1. True. Debtor Control Account refers to data from Sales Ledger and Creditor Control Account refers to data from Purchase Ledger.

2. True. Settlement discount are provided to customer for early or prompt payment of invoice, so that I can receive the payment at the earliest.

3. False. Trade Discount are offered to reseller ie the one who will resell the product to end customer.    These are generally given by wholesaler to retailer.

4. True. Receipt is an acknowledgement that sale is being done in all aspects including payment.

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