CASH DISCOUNT Meaning and
Definition
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A cash discount refers to a financial incentive or reduction in price offered to customers who pay for products or services in cash, rather than through credit or other payment methods. It is a way for businesses to encourage customers to make immediate payment and avoid the costs associated with deferred payments.
The cash discount is usually expressed as a percentage of the total purchase amount, and it represents the discount the customer can receive if they choose to pay in cash. For example, a store may offer a 3% cash discount on the total bill if the customer pays with cash instead of using a credit card.
This discount benefits both the customer and the business. From the customer's perspective, they get a lower price for the product or service by taking advantage of the cash discount. On the other hand, the business benefits from immediate cash flow, as they receive the payment upfront, rather than waiting for payment from a credit card processor or extended payment terms.
It is important to note that a cash discount is different from a store or promotional discount. The latter is a reduction in the regular price of a product or service, while a cash discount specifically applies to customers who choose to pay in cash, offering an incentive for immediate payment.
Common Misspellings for CASH DISCOUNT
- xash discount
- vash discount
- fash discount
- dash discount
- czsh discount
- cssh discount
- cwsh discount
- cqsh discount
- caah discount
- cazh discount
- caxh discount
- cadh discount
- caeh discount
- cawh discount
- casg discount
- casb discount
- casn discount
- casj discount
- casu discount
- casy discount
Etymology of CASH DISCOUNT
The term "cash discount" is composed of two parts: "cash" and "discount".
The word "cash" originated from the Old French word "caisse", meaning "money box" or "treasury". It eventually evolved into the Middle French word "caisse" and entered English in the 16th century as "cash", referring to actual money or currency.
On the other hand, the word "discount" comes from the Old French verb "desconter", which means "to count off" or "to deduct". It was derived from the Latin word "discomputare", composed of "dis-" (reverse) and "computare" (to reckon or count).
When combined, the term "cash discount" refers to a deduction or reduction in the price or amount payable, often offered to customers who pay in cash instead of credit or other forms of payment.
Similar spelling word for CASH DISCOUNT
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