Question

Give the word term or phrase which can substitute each of the following statements :

An allowance given by receiver of the cash to the giver of cash at the time of payment.

Answer 1

An allowance given by receiver of the cash to the giver of cash at the time of payment- Cash discount
Explanation:
Any allowance given by receiver of the cash to giver of the cash at the time of payment is termed as a cash discount. It is provided to the customers for making instant payments or payments within a specified period of time. It is an expense towards the business and is always recorded in the books of accounts. It is allowed and ascertained after deducting trade discount.