A(n) ________ is a price reduction to buyers who pay their bills promptly.
A) discount
B) functional discount
C) quantity discount
D) seasonal allowance
E) allowance

Question

Quizplus · Accepted Answer

A discount is a reduction in price offered to buyers who pay their bills promptly. It is a common incentive for customers to pay their bills on time and helps to improve a company's cash flow. Functional discounts, quantity discounts, seasonal allowances, and allowances may also be offered by companies, but they do not specifically relate to prompt payment.

A(n) ________ Is a Price Reduction to Buyers Who Pay