Concept:A discount given to encourage a debtor to pay quickly is called a cash discount.
Explanation:Cash discount is a reduction in the amount owed, offered to a debtor for settling the debt within a stated period.
It is also referred to as an early payment discount.
Its main purpose is to motivate customers to make payment promptly, which improves the seller's cash flow.
Trade discount is different because it is a reduction from the list price, usually for bulk purchases, and is not linked to early payment.
Annual and periodic discounts are not standard accounting terms for this kind of incentive.
Therefore, the discount given to encourage a debtor to pay off his debt within a period is the cash discount.
Answer:Cash discount.