A discount that is allowed to encourage a debtor to pay off his debt within a period is the
-
A.
annual discount -
B.
trade discount -
C.
periodic discount -
D.
cash discount
Correct Answer: Option D
Explanation
A cash discount is a deduction allowed by some sellers of goods or by some providers of services in order to motivate customers to pay within a specified time. The cash discount is also referred to as an early payment discount.