4.6 Highlights
- Bank discount is a bank charge that is made for payment of a note at some point prior to maturation.
- Trade discount is a discount that is cut from the retail or published price of an item.
- A cash discount is also called a sales discount by the seller, and a purchase discount by the buyer. It aims to induce early payment.
- A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.
