0452.2.3.04 — distinguish between and account for trade discount and cash discounts: past paper questions
Real questions on 0452.2.3.04 — distinguish between and account for trade discount and cash discounts
The newest 15 of 15 written questions. Open one to see it on the real paper.
- 0452/23 · October/November 2025 · Q2d(i)[1]
cash discount (i)
See it on the paper → - 0452/23 · October/November 2025 · Q2d(ii)[1]
trade discount. Jenny has received goods from one of her credit suppliers. When she inspected the goods, she found they were faulty. REQUIRED
See it on the paper → - 0452/23 · October/November 2025 · Q3d[5]
Advise Rushil whether or not he should allow his credit customers a cash discount if they make payment to him within 21 days. Justify your answer with arguments for and against Rushil allowing his credit customers a cash discount if they make payment to him within 21 days.
See it on the paper → - 0452/23 · October/November 2025 · Q4c[5]
Advise Talula whether or not she should accept card payments. Justify your answer by providing two arguments for and two arguments against Talula accepting debit and credit card payments. Sheila, who rents part of Talula’s premises, has asked Talula if she would be interested in forming a partnership. REQUIRED
See it on the paper → - 0452/21 · May/June 2024 · Q1e[5]
Advise Addo whether or not he should make these changes to his credit terms. Justify your answer by providing two advantages and two disadvantages of changing his credit terms.
See it on the paper → - 0452/23 · May/June 2023 · Q1c[5]
Advise Omer whether he should choose: Option 1 – purchase supplies from Alexander only, or Option 2 – purchase supplies from both Alexander and Tahir Justify your answer by providing three advantages and one disadvantage of the option you have chosen.
See it on the paper → - 0452/21 · October/November 2022 · Q3d(i)[1]
Calculate each of the following: the trade discount
See it on the paper → - 0452/21 · October/November 2022 · Q3d(ii)[1]
Calculate each of the following: the cash discount
See it on the paper → - 0452/21 · October/November 2022 · Q3d(iii)[1]
Calculate each of the following: the amount paid to the supplier JP
See it on the paper → - 0452/21 · October/November 2022 · Q3e[4]
Complete the table below indicating with a tick (✓) the effect of each type of discount on gross profit and profit for the year.
See it on the paper → - 0452/23 · October/November 2022 · Q3d(i)[1]
the trade discount
See it on the paper → - 0452/23 · October/November 2022 · Q3d(ii)[1]
the cash discount
See it on the paper → - 0452/23 · October/November 2022 · Q3d(iii)[1]
the amount paid to the supplier JP
See it on the paper → - 0452/23 · October/November 2022 · Q3e[4]
Complete the table below indicating with a tick (✓) the effect of each type of discount on gross profit and profit for the year. Discount allowed increase decrease no effect increase decrease no effect gross profit profit for the year Discount received gross profit profit for the year
See it on the paper → - 0452/22 · May/June 2020 · Q5c[5]
Advise the directors whether they should introduce the cash discount policy or the interest charge policy. Justify your answer by providing one advantage and one disadvantage of each policy.
See it on the paper →
What examiners said
The purchasing decision between two suppliers was reasonably well attempted. Relationship issues such as having a back-up supplier were regularly seen but the differential between cash and trade discount was rarely identified. Many candidates assumed that Tahir would be the best supplier allowing bulk purchases to be made but did not make the link that the cost of goods would be reduced.
— Examiner report, May/June 2023, 0452/23 Q1(c) (Cambridge)
Using information provided about an invoice and the date of payment, candidates were required to calculate trade discount, cash discount and the amount paid. The majority correctly calculated trade discount. Many candidates incorrectly calculated the cash discount as a percentage of the list price rather than a percentage of the price after trade discount.
— Examiner report, October/November 2022, 0452/23 Q3(d) (Cambridge)
Using information provided about an invoice and the date of payment, candidates were required to calculate trade discount, cash discount and the amount paid. The majority correctly calculated trade discount. Many candidates incorrectly calculated the cash discount as a percentage of the list price rather than a percentage of the price after trade discount.
— Examiner report, October/November 2022, 0452/23 Q3(d) (Cambridge)
Past papers, syllabus and examiner reports © UCLES (Cambridge University Press & Assessment). Questions are matched to topics from the official syllabus. AssessPro is independent and not endorsed by Cambridge.