A Discount Offered as an Inducement for Prompt Payment of an Invoice

question 28

Multiple Choice

A discount offered as an inducement for prompt payment of an invoice is called a(n)

• A) trade discount.
• B) invoice discount.
• C) early discount.
• D) cash discount.

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Definitions:

Stored-Value Card

A plastic card that contains data regarding the value of the card, thereby allowing EFTs to be made.

Magnetic Strip

A strip of magnetic material on a credit card or other card containing data that can be read by swiping it through a reader.

Data

Information, especially facts or numbers, collected to be examined and considered and used to help make decisions.

Cutoff Hour

The specific time by which a certain action must be completed, often used in banking and other time-sensitive environments.