When Sherman bought gas, he noticed the convenience store offered him a 3 percent reduction in price if he paid cash rather than used his credit card. The convenience store was offering him a:
A)cash discount.
B)rebate.
C)trade discount.
D)promotional allowance.

Question

Quizplus · Accepted Answer

A cash discount is a reduction in price offered to customers who pay with cash rather than credit. This is exactly what Sherman experienced at the convenience store, making A the correct choice. A rebate is an amount refunded to a customer after a purchase is made, C and D are discounts given by manufacturers to retailers and not relevant in this scenario.

When Sherman Bought Gas, He Noticed the Convenience Store Offered