Neco 2023 Commerce Question 24

Practice objective / multiple choice question 24 from the 2023 Neco Commerce examination.

Neco 2023 Commerce Objective / Multiple Choice Hard Difficulty
Question 24 NECO • 2023 • COMMERCE • objective

A company issues a proforma invoice for \(2{,}500{,}000\) naira. The buyer receives a trade discount of 12% on the list price, followed by a cash discount of 3% on the balance after the trade discount if payment is made within 10 days. After all discounts, a value‑added tax (VAT) of 7.5% is added. The buyer pays within the discount period.\n\n(a) Calculate the amount payable by the buyer.\n(b) Write an appropriate salutation and closing for a formal business letter addressed to "Mr. Adewale Okoro, Purchasing Manager, XYZ Ltd.".

Answer Options

A. 2,294,050; Salutation: \"Dear Mr. Adewale Okoro,\" Closing: \"Yours faithfully,\n[Your Name]\n[Your Position]\n[Company Name]\"
B. 2,310,000; Salutation: \"Dear Mr. Okoro,\" Closing: \"Yours faithfully,\n[Your Name]\n[Your Position]\n[Company Name]\"
Correct Answer C. 2,294,050; Salutation: "Dear Mr. Okoro," Closing: "Yours faithfully,\n[Your Name]\n[Your Position]\n[Company Name]"
D. 2,294,050; Salutation: \"Dear Mr. Okoro,\" Closing: \"Sincerely,\n[Your Name]\n[Your Position]\n[Company Name]\"
Correct Answer
C
Correct Option:
2,294,050; Salutation: "Dear Mr. Okoro," Closing: "Yours faithfully,\n[Your Name]\n[Your Position]\n[Company Name]"

About This Question

This is Neco 2023 Commerce Question 24. It is one of the objective questions from the 2023 Neco Commerce examination.

Difficulty level: Hard .

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