Business Documents (Cambridge (CIE) IGCSE Accounting): Exam Questions

Omer buys all his supplies from Alexander who does not allow Omer any trade discount. Omer is now considering also purchasing supplies from Tahir who would offer him 3% trade discount but no cash discount.

REQUIRED

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.

Shvan is considering whether to stop keeping cash at his business premises. He would require all customers to transfer payment directly into his bank account and he would make all business payments from his bank account.

REQUIRED

(i) State one way Shvan could pay his suppliers, from his bank account, other than by cheque

(ii) Advise Shvan whether he should stop using cash. Justify your answer by providing two advantages and two disadvantages of stopping using cash.