Consideration paid or payable to customers
A)includes volume rebates which increases the cost to the customer.
B)includes discounts which reduces the cost of purchases to the company.
C)reduces the consideration received and the revenue to be recognized.
D)includes prompt settlement discount which increases revenues.

Question

Quizplus · Accepted Answer

Consideration paid or payable to customers, such as discounts or rebates, reduces the total consideration received by the seller and therefore reduces the revenue recognized.

Consideration Paid or Payable to Customers