Define discounts (in credit terms)

Q: Define Notes payable.

A: Notes payable is a liability item in the balance sheet of an organization.

Q: Define Interest receivable.

A: Introduction: Interest Receivable is an amount which has been earned by the person but the same has…

Q: What is a creditor

A: Given the following question: What is a creditor?

Q: What is the difference between a credit sale (with a higher price as compared to the cash sale) and…

A: The amount of Sales made in credit has to be collected after certain period of time. In case of cash…

Q: the trade discount and trade discount rate.

A: List Price Net Price Trade Discount Trade Discount Rate 65.00 50.00 15.00 23.08% 115.00 98.00…

Q: How to calculate the list price? O a. List price = Amount of Discount/Rate of Discount O b. List…

A: Discount means the amount which is not required to be paid or received. Discount is deducted to find…

Q: Which of the following is NOT commonly regarded as being a credit policy variable? * Collection…

A: “Since you have asked multiple question, we will solve one question for you. If you want any…

Q: What is a sale on credit and why it is needed? Give three examples?

A: Sale on Credit: A sale on credit is revenue earned by a company when it sells goods and allows the…

Q: Define Receivables turnover ratio with example.

A: Receivables turnover ratio: It refers to the accounting ratio that shows the efficiency of a firm of…

Q: Define revolving credit agreement

A: Revolving credit agreement: A revolving credit is a lawful guarantee in which a bank agrees to lend…

Q: Define Trade discounts.

A: Business:   It refers to a commercial activity involving buying and selling of a product or a…

Q: How the interest rate affects the release of credit card

A: Given,

Q: Differentiate between a stated rate of interest and effective rate of interest.

A: Answer: Stated interest rate: This is the interest rate quoted or the average rate offered by the…

Q: Distinguish between bank discount and simple interest.

A: Bank discount is defined as a interest which is deducted by the bank when a loan is made. It is…

Q: Explain the lending methodology

A: Loaning (otherwise called "financing") happens when somebody permits someone else to get something.…

Q: What are receivables credits? Please explain.

A: Receivable refers to the assets of the company created due to sale of goods and service on credit to…

Q: Define discount percentage (credit)

A: The discount rate is the amount paid on debit and credit card payments to a dealer for payment…

Q: calculate the discount date and the net date for the transaction.

A: Given that the invoice terms are 2/10 , n/45 That is if the invoice is paid in 10 days we get a…

Q: nd de

A: The terms debit (DR) and credit (CR) have Latin roots: debit comes from the word debitum, meaning…

Q: Cash Discounts. ISCoun

A: It is pertinent to note that cash discounts are given by debts for prompt payment of invoices .…

Q: Define secured loans.

A: Secured Loans: Secured loans are those for which the borrower puts up some asset as security or…

Q: Explain mezzanine loan?

A: Mezzanine financing is a blend of both debt and equity financing. It is a way for firms to raise…

Q: Does a Discounted Note Payable provide credit without interest?

A: Discounted Note Payable means that the purchase price(PV) is less than the maturity/face value(FV)…

Q: Define each of the following terms: l. Stretching accounts payable; free trade credit; costly trade…

A: Trade credit is the outstanding due arising from sales or purchases made on credit. Accounts Payable…

Q: In your own definition what is credit and what is collection

A: The businesses tend to conduct their operations not only on a cash basis but also on a credit basis.…

Q: Define the characteristics of Notes Payable?

A: A notes payable is described as the written promissory notes. By issuing notes payable, the debtor…

Q: Discuss creditworthiness and its relation to the 5 C's of credit.

A: Creditworthiness is the evaluation of one company by another company to determine whether the…

Q: Credit entry in a nominal amount is

A: Credit entry in a nominal account is:- Cash account      Debit  Income and Gains account   Credit

Q: Does a discounted note payable provide credit without interest? Discuss.

A: Short-term notes payable: Short-term notes payable is a written promise made by the business to pay…

Q: Define credit period

A: The purchase and sales transactions are in the form of cash or credit. If the payment is made at the…

Q: Define the term debt ratio.

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: How do I find the credit for partial payment?

A: Discount is a selling goods or service below the price of goods. This reduction in price is offered…

Q: Define the term Accounts Receivable Turnover?

A: Accounts receivable turnover: This is the ratio which analyzes the number of times accounts…

Q: Describe the conditions that would make the use of advance-discounts appropriate.

A: Discount means a selling of goods or service below the price of goods. This reduction in price is…

Q: Define the term accounts receivable?

A:

Q: Define discount period (credit)

A: Credit period:   Credit period is the maximum amount of time, expressed in days, provided by the…

Q: Explain the term Loan Repayment Schedule?

A: Loan is a sum of money borrowed by an individual/organization from a bank or lender that has to be…

Q: What is a revolving credit agreement?

A: Credit refers to the concept is being defined as the financial agreement where the borrowers receive…

Q: Define account receivable

A: The formula to compute accounts receivable turnover ratio as follows: Accounts receivable turnover…

Q: What is a credit limit? How does it impact credit utilization (debit-credit ratio) and why is that…

A: Credit Limit :- Credit limit is an limit of spending on an Customer or its the maximum credit can a…

Q: Diffrence between debit and credit ?

A: Debit and credit are two sides of general ledger account. For some accounts, debit means increase…

Q: Documents of credit appraisal for individual loan.

A: Credit appraisal basically refers to assessing a particular loan application or proposal in a…