Trade-in allowance
Trade-in allowance is a value received when one asset is traded in on the purchase of another asset. For example, when you buy a new car you may trade in your old car for an amount of money that is applied toward the purchase of the new car.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Trade-in allowance. A value received when one asset is traded in on the purchase of another asset. For example, when you buy a new car you may trade in your old car for an amount of money that is applied toward the purchase of the new car.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
