A Discount Given to Encourage Prompt Payment on a Credit

question 50

Multiple Choice

A discount given to encourage prompt payment on a credit purchase of merchandise is called:

• A) a cash discount.
• B) a sales discount by the seller.
• C) a purchase discount by the buyer.
• D) all of these are correct.

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Definitions:

Producing

The act or process of creating goods or services by combining labor, materials, and technology.

Fifth Sweatshirt

Additional unit or item, indicative of a point in consumption where assessing marginal utility or other economic factors becomes relevant.

Ability-to-pay

A principle in taxation that states taxes should be levied on individuals or entities based on their ability to pay, which is often measured by income or wealth.

Higher Incomes

Refers to an increase in the amount of money earned by individuals or households, typically from employment, investments, or business operations.