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JAMB Accounting 2017 Objective — Question 30

Question 30 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2017 Objective paper, with the correct answer and a full explanation.

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A discount that is allowed to encourage a debtor to pay off his debt within a period is the

  • A. A. periodic discount
  • B. B. cash discountCorrect
  • C. C. annual discount
  • D. D. trade discount

Explanation

A cash discount is given to encourage prompt payment for goods and services.

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