The incentive given to a buyer to encourage prompt payment is
-
cash discount
- seasonal discount
- quantity discount
- trade discount
The correct answer is: 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.