4) 5) Why do companies provide trade discounts? a. To avoid frequent changes in catalogs. b. To induce prompt payment. C. To easily alter prices for different customers. d. To avoid frequent changes in catalogs and to easily alter prices for different customers. Under the lower-of-cost-or-market rule, market will be replacement cost except when replacement cost is a. higher than cost. b. less than net realizable value. C. less than net realizable value less a normal profit margin. d. less than cost. Green Co. received merchandise on consignment. As of January 31, Green included the goods in inventory, but did not record the transaction. The effect of this on its financial statements for January 31 would be a. net income, current assets, and retained earnings were overstated. b. net income was correct and current assets were understated. C. net income and current assets were overstated and current liabilities were understated. d. net income, current assets, and retained earnings were understated. 6)