Cash discount is given for prompt settlement of account.
A cash discount is an incentive offered by a seller to encourage a buyer to pay an invoice or bill quickly. It is a reduction in the amount owed by the buyer for making the payment within a specified period of time. This discount is given to encourage prompt payment of accounts, and to improve cash flow for the seller.
is the correct answer because a cash discount is given to customers who make payments within a certain period of time, usually shorter than the standard credit period. This is done to encourage prompt payment and to reduce the risk of bad debts for the seller.
The other options listed in the question are not correct because they do not relate to the purpose of a cash discount. For example, buying in large quantities or introducing other customers may be reasons for receiving other types of discounts, such as a trade discount or volume discount, but not a cash discount. Being a regular customer or sales returns also do not relate to the prompt settlement of accounts, which is the main purpose of a cash discount.