Question

Indicate by choosing the correct option whether the following statement is true or false:

 

Settlement discount granted is offered to debtors in order to encourage quick settlement of their debts within the stated credit term shown on the credit invoice. 

True

False

Answer 1

Settlement discounts are discounts which are given to a customer for the early payment of an invoice. If a payment is received from your customer within the number of days negotiated then the discount may be deducted from the invoice value.

So, the statement is true.