WAEC Financial Accounting 2002 Question 33

Question 33

Cash Book

A deduction from the sales price of goods that is allowed if payment is made within a specified period of time is

  1. A.trade discount
  2. B.cash discount
  3. C.quantity discount
  4. D.rebate.
Show the answer and explanation

Answer: B (cash discount)

Explanation

Cash discount rewards prompt payment.