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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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