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A discount that is allowed to encourage a debtor to pay off his debt within a period is ...

A discount that is allowed to encourage a debtor to pay off his debt within a period is the
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  • A Annual discount
  • B Trade discount
  • C Periodic discount
  • D Cash discount
Correct Answer: Option D
Explanation:
cash discount is a deduction allowed by some sellers of goods or by some providers of services in order to motivate customers to pay within a specified time. The cash discount is also referred to as an early payment discount.
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