Cash discount is allowed on ______ repayment of debt A. Lump sum B. Prompt C. Actual D. None of them

The correct answer is B. Prompt.

A cash discount is a reduction in the price of goods or services offered to customers who pay their invoices promptly. This is often done as an incentive to encourage customers to pay their bills on time, which can improve a company’s cash flow.

Lump sum repayment is a single payment of the full amount owed. This is often done when a loan is paid off early, or when a large purchase is made.

Actual repayment is the total amount of money that is paid back, including the principal amount and any interest or fees.

None of the other options are correct because