The correct answer is: C. Cash discount
A cash discount is a reduction in the price of goods or services offered to customers who pay for their purchases within a specified time period. This type of discount is often used as an incentive to encourage customers to pay their bills promptly.
A trade discount is a discount offered to businesses that purchase goods or services in bulk. This type of discount is designed to encourage businesses to buy more products from the supplier, which can lead to increased sales and profits for both parties.
A prompt payment discount is a discount offered to customers who pay their bills within a specified time period. This type of discount is designed to encourage customers to pay their bills promptly, which can help the supplier to improve their cash flow.
A bulk discount is a discount offered to customers who purchase goods or services in bulk. This type of discount is designed to encourage customers to buy more products from the supplier, which can lead to increased sales and profits for both parties.
In conclusion, the correct answer is: C. Cash discount.