A cash discount is a reduction in the invoice amount offered to customers to encourage early payment. By offering this discount, businesses can enhance cash flow and reduce the risk of non-payment.
In the realm of accounting, a 'discount' refers to a variety of reductions applied to amounts due or outstanding, impacting both operational transactions and financial statements.
A purchase discount is a financial incentive offered by sellers to buyers for early payment of an invoice. It is commonly known as a cash discount.
A sales discount, also known as a cash discount, is a reduction in the price of a product or service that is offered by the seller to buyers as an incentive for prompt payment.
