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The term "21/4%40 days"refers to?

Commerce
WAEC 2001

The term "21/4%40 days"refers to?

  • A. mark-up
  • B. trade discount
  • C. cash discount
  • D. value added tax
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Correct Answer: Option C
Explanation

The term "21/4% 40 days" refers to a cash discount. In this context, it means that if the buyer pays the invoice within 40 days, they can take a 2.25% discount off the total amount due. Cash discounts are incentives offered by sellers to encourage prompt payment of invoices.


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