A discount that is allowed to encourage a debtor to pay off his debt within...
FINANCIAL
JAMB 2016
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: D. cash discount
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
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