Accounting 0452 · IGCSE · Books of prime entry

Books of prime entry — practice question

Which statement about cash discounts is incorrect?

  • ACash discounts are given if payment is made within the time limit set by the supplier.
  • BCash discounts are shown as a reduction from the list price when goods are ordered.
  • CCustomers will show cash discounts given to them as other income in the income statement.
  • DSuppliers will show the cash discounts they give as an expense in the income statement.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI