Lesson 1, Topic 4
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Differences between Cash Discount and Trade Discount

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Topic Content:

  • Meaning of Discount
  • Types of Discount
  • Differences between Cash Discount and Trade Discount

Discount can be defined as the reduction in the catalogue price of goods in order to encourage bulk purchase and prompt payment.

Types of Discount:

Discount is divided into two (2) namely:

(i) Trade discount: This is a specified percentage reduction made by the seller and is usually for customers who 

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