Trade discounts and volume rebates given are treated how?
ADeducted from revenue
BShown as expenses
CAdded to revenue
DIgnored altogether
Answer & Solution
Correct answer: A. Deducted from revenue
Discounts and rebates given are deducted in determining revenue.
Keep practising Revenue Recognition (AS 9)
Browse all Revenue Recognition (AS 9) questions for CA Inter, or explore more Accounting topics.
Related questions
Sales of Rs 1,00,000 carry a 2% volume rebate given. Revenue is what?A consignor sends 100 units at Rs 500; the consignee sold 60. Consignor's revenue?Membership fee giving only membership, with a separate annual subscription, is booked whenFees of Rs 36,000 cover a 9-month course. Revenue for 3 months is what?Fees for a season ticket to many events are allocated how?Trade discounts received are not revenue because they are what?Interest on an instalment sale is recognised in proportion to what?An instalment sale has cash price Rs 50,000 plus Rs 6,000 interest. Revenue at sale date?