The incentive given to a buyer to encourage prompt payment is
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Correct Answer: Option A
Explanation:
Cash discount is given in order to encourage prompt payment. For example: "2/7; Net 30 means that if the customer pays within 7 days of receiving the goods, he may take 2% off the amount stated in the invoice, if he does not, he will have to pay the full amount stated in the invoice within 30 days.
Cash discount is given in order to encourage prompt payment. For example: "2/7; Net 30 means that if the customer pays within 7 days of receiving the goods, he may take 2% off the amount stated in the invoice, if he does not, he will have to pay the full amount stated in the invoice within 30 days.