Multiple choice

Trade discount is

  1. allowed on payment made before a certain date

  2. allowed on a certain quantity of goods purchased

  3. not deducted from the amount of invoice

  4. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Trade discount is allowed on a certain quantity of goods purchased. For ex; a customer purchases 105 pieces of paper rolls then a discount may be given to him as in 5% on the total amount of purchase.

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