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Purchase discounts come in two kinds: trade discounts and discounts that are:
ACyclic
BCapped
CCurved
DCash
Answer & Solution
Correct answer: D. Cash
1. One kind is offered on the list price before purchase.
2. The other rewards fast payment afterwards.
3. That second kind is a cash discount.
_Source: OpenStax Principles of Financial Accounting, Chapter 6, Merchandising Transactions._
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