Geoff Industries offers its credit customers a two percent discount if they pay within ten days. This discount is referred to as a ________ discount.
A) cash
B) purchase
C) collection
D) market
E) receivables

Question

Quizplus · Accepted Answer

The discount offered by Geoff Industries is given to credit customers who pay their invoices within ten days. This is referred to as a cash discount because it incentivizes customers to pay their bills promptly, thereby improving the cash flow of the business.

Geoff Industries Offers Its Credit Customers a Two Percent Discount