A cash discount is provided on:Question 8Answera.Cash purchasesb.Purchasesc.Salesd.Prompt payment

Breakdown the Problem

1. Identify the situation described (cash discount).
2. Analyze the options given (a. Cash purchases, b. Purchases, c. Sales, d. Prompt payment).

Relevant Concepts

• A cash discount is usually offered to encourage early payment on a debt or purchase.

Analysis and Detail

1. Cash purchases generally do not receive a cash discount since they are paid immediately.
2. Purchases, in general, could be eligible for cash discounts but need to be specified (e.g., prompt payment).
3. Sales pertain to the transaction aspect but do not inherently indicate a cash discount.
4. Prompt payment explicitly suggests that a discount is provided for settling accounts quickly.

Verify and Summarize

Upon analyzing the options, it is clear that a cash discount is indeed associated with faster payments for transactions.

Final Answer

d. Prompt payment