Asked by
Purna Lala Alfaradhea
on Nov 07, 2024Verified
A discount on the purchase price given to buyers as an inducement for prompt payment is called a(n) _______________.
A) Cash discount.
B) Purchases discount.
C) Original issue discount.
D) Open market discount.
E) Receivables discount.
Cash Discount
A reduction in the invoice amount by a seller if the buyer pays within a specified period, incentivizing early payment.
Purchases Discount
Purchases Discount represents a reduction in the price of goods a company buys, usually offered by suppliers as an incentive for early payment.
- Ascertain and assess the impact of cash discounts on purchasing and payment patterns.
Verified Answer
AC
Learning Objectives
- Ascertain and assess the impact of cash discounts on purchasing and payment patterns.