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- Subject
- Accounting Mcqsaccounting-mcqs
- Published
- 20 Oct 2023
- Last updated
- 28 May 2026
Cash discount is typically offered as an incentive for which of the following?
Multiple choice question for Accounting Mcqs. Select an option, then review the explanation below.
Explanation
A cash discount is a reduction in the amount payable granted to a buyer for making a payment promptly or within a specified time period. It encourages early settlement of invoices rather than delayed payments.
More Accounting Mcqs
Practice related questions from the same subject.
- 1.What is the accounting method called that systematically allocates the unexpired cost of fixed assets as expenses over multiple accounting periods?
- 2.What is the term used for any written document that serves as proof of a business transaction?
- 3.What term is used for the price reduction granted on faulty or damaged goods?
- 4.What is the term for the money invested by the owner to initiate a business?
- 5.What term is used to describe a decrease in the original price of an item?