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WAEC Financial Accounting 2023 Question 12

Question 12

Final Accounts of a Sole Trader

Discount allowed is shown in financial statements as

  1. A.an expense.
  2. B.an income.
  3. C.an asset.
  4. D.a liability.
Show the answer and explanation

Answer: A (an expense.)

Explanation

Discount allowed is a cost of collecting debts quickly, an expense in profit and loss.