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Cash Discount:

Reduction in price given by the creditor to the debtor is known as cash discount. This discount is intended to speed payment and thereby provide liquidity to the firm. They are sometimes used as a promotional device. we also explain that discount is relaxation in price.

http://en.wikipedia.org/wiki/Discounts_and_allowances#Trade_discount

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Related Questions

A deduction that a vendor allows on the invoice amount to encourage prompt payment is called?

It is called a Cash Discount


What discount given by the seller to the buyer to encourage prompt payment called?

The discount given by the seller to the buyer to encourage prompt payment is called a "cash discount." This incentive is typically offered as a percentage off the invoice total if payment is made within a specified period, such as 10 days. Cash discounts help improve cash flow for the seller and encourage timely payments from buyers.


What does ppd on bank statement mean?

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What is an 'Off Invoice Discount'?

An 'Off Invoice Discount' is a reduction in the invoice price granted to a buyer, typically as an incentive for early payment or bulk purchases. This discount is applied directly to the invoice amount before payment is made, effectively lowering the total cost for the buyer. It is commonly used in business-to-business transactions to encourage prompt payment and strengthen buyer-seller relationships.


What is a discount book?

Discount - A deduction from the usual cost of something, typically given for prompt or advance payment or to a special category of buyers.Therefore a Discount Book is a cheap book.


What is Concept of discount retailing giving details of the world largest discount retailer?

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Discount allowed is classified as a selling expense or a marketing expense. It represents a reduction in the selling price offered to customers to encourage sales or reward prompt payment. This expense reduces the overall revenue recorded by a business, impacting its net income. It is recorded on the income statement as a deduction from sales revenue.


What do 3ND2 payment terms mean?

Ah, payment terms can sometimes be like happy little trees in the world of business. "3ND2" stands for "3% discount if paid within 2 days." It's a way for businesses to encourage prompt payment and build positive relationships with their customers. Just like adding a touch of titanium white to your painting, these payment terms can bring a sense of balance and harmony to your financial transactions.


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