Discounts offered to encourage early payment of outstanding accounts are called ____ discounts.
A) Trade
B) Cash
C) wholesale
D) quantity
E) preferential

Question

Quizplus · Accepted Answer

Cash discounts are offered to encourage early payment of outstanding accounts. Trade discounts are discounts given to customers according to their status in the supply chain or volume of purchases. Wholesale discounts are given to customers who purchase large quantities of goods. Quantity discounts are discounts given to customers who purchase a certain amount or quantity of goods. Preferential discounts are not a commonly used term in accounting or finance.

Discounts Offered to Encourage Early Payment of Outstanding Accounts Are