Accounting 0452 · IGCSE · Business documents

Business documents — practice question

Which of the following statements about trade discount are correct? 1. It is entered on the supplier’s account as a debit. 2. It is granted only when the invoice is settled within the time allowed by the supplier. 3. It appears on an invoice as a reduction from the price of the goods. 4. It is intended to encourage buying in large quantities.

  • A1 and 2
  • B1 and 3
  • C2 and 4
  • D3 and 4

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