Multiple choice

A deduction that a vendor allows on the invoice amount to encourage prompt payment

  1. Purchases discount

  2. Petty cash

  3. Cash discount

  4. ;P
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A cash discount is a reduction in the invoice price offered by a vendor to encourage the buyer to pay within a specific time frame. Purchases discount is the buyer's perspective, but cash discount is the broader term for the deduction itself.

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