When a business offers you a discount of 2 percent if you pay the bill in full within 7 days,it is called:

Question

Quizplus · Accepted Answer

When a business offers a discount of 2 percent for a prompt payment, it is called a discount for prompt payments. Option A, noncore payments, is not a term used in accounting or business finance. Option B, progress payments, are payments made on a project as it progresses, usually in construction or manufacturing projects. Option C, receivables discount, is a general term for any discount given to customers for early payment of an invoice, which may or may not be for prompt payment specifically.

When a Business Offers You a Discount of 2 Percent