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21) Payment made to creditor is with cash discount is a) reduce asset & reduce liability, add to expenses c) reduce asset & increase liability, add to expenses b) reduce asset & reduce liability, add to income d) increase asset & reduce liability, add to income?
Most Upvoted Answer
21) Payment made to creditor is with cash discount is a) reduce asset ...
B) reduce liability

c) increase asset

d) increase liability

b) reduce liability.

When a payment is made to a creditor with a cash discount, it means that the creditor has offered a reduction in the amount owed if the payment is made within a certain period of time. This results in a lower liability for the debtor (the one making the payment) and a reduction in the amount owed. Therefore, option b) reduce liability is the correct answer.
Community Answer
21) Payment made to creditor is with cash discount is a) reduce asset ...
Answer will be option A because on payment made to creditors cash will decrease and the liability will also decrease and it’s an expense for us
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21) Payment made to creditor is with cash discount is a) reduce asset & reduce liability, add to expenses c) reduce asset & increase liability, add to expenses b) reduce asset & reduce liability, add to income d) increase asset & reduce liability, add to income?
Question Description
21) Payment made to creditor is with cash discount is a) reduce asset & reduce liability, add to expenses c) reduce asset & increase liability, add to expenses b) reduce asset & reduce liability, add to income d) increase asset & reduce liability, add to income? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 21) Payment made to creditor is with cash discount is a) reduce asset & reduce liability, add to expenses c) reduce asset & increase liability, add to expenses b) reduce asset & reduce liability, add to income d) increase asset & reduce liability, add to income? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 21) Payment made to creditor is with cash discount is a) reduce asset & reduce liability, add to expenses c) reduce asset & increase liability, add to expenses b) reduce asset & reduce liability, add to income d) increase asset & reduce liability, add to income?.
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