The monetary incentive given to encourage prompt payment is called the:

A) Invoice amount.
B) Credit amount.
C) Sale term.
D) Receivables credit.
E) Cash discount.

Monetary Incentive

A financial reward given to employees, customers, or other stakeholders to motivate specific behaviors or outcomes.

Cash Discount

A reduction in the amount owed by a customer if payment is made within a specified period.

Prompt Payment

Timely payment for goods or services, often within a specified period to avoid penalties or to qualify for discounts.