Concept:A cash discount is a reduction offered to encourage a customer to pay an invoice quickly.Explanation:A seller gives a cash discount when the customer agrees to settle the outstanding amount within a stated period.This benefits the seller because receiving payment earlier, even at a slightly reduced amount, is better than waiting longer for the full payment.It helps improve the seller’s cash flow and reduces the risk of late or non-payment.Answer:C. settlement of account within a stated period.