A discount that buyers take for early payment of merchandise is called a
A)customer discount.
B)purchases discount.
C)sales discount.
D)trade discount.

Question

Quizplus · Accepted Answer

The discount that buyers take for early payment of merchandise is called a purchases discount. This is because the buyer is receiving a discount for paying for their purchases early, which is an incentive for them to continue making purchases from the seller. The other options are not accurate descriptions of this type of discount. A customer discount is a discount given to a customer for various reasons such as loyalty or good behavior. A sales discount is a discount given by the seller for various reasons such as seasonal sales or to reduce inventory. A trade discount is a discount applied to the list price of a product or service for specific groups such as wholesalers or retailers.

A Discount That Buyers Take for Early Payment of Merchandise