O-LevelAccountingThe fundamentals of accounting7707/12 · Oct/Nov 2021 · Q81 Mark

Why does a supplier offer trade discount?

Ato avoid irrecoverable debts

Bto encourage bulk buying

Cto encourage payment in cash

Dto reward prompt payment

✓ Correct answer

B: to encourage bulk buying

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Topic: The fundamentals of accounting, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2021 Paper 1 Variant 2, question 8.

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