JAMB Accounting 2016 Objective — Question 30
Question 30 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2016 Objective paper, with the correct answer and a full explanation.
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30. A discount that is allowed to encourage a debtor to pay off his debt within a period is the (a) periodic discount (b) cash discount (c) annual discount (d) trade discount
- A. periodic discount
- B. cash discountCorrect
- C. annual discount
- D. trade discount
Explanation
Cash discount is usually given to encourage prompt payment for goods and services.
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