O-LevelAccountingAccounting principles and policies7707/11 · May/June 2020 · Q91 Mark

Which statements about trade discount are correct? 1 It is debited to the supplier's account. 2 It is only given if the invoice is paid within the period allowed by the supplier. 3 It is shown as a deduction from the price of the goods on an invoice. 4 It is used to encourage bulk buying.

A1 and 2

B1 and 3

C2 and 4

D3 and 4

✓ Correct answer

D: 3 and 4

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Topic: Accounting principles and policies, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2020 Paper 1 Variant 1, question 9.

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