Which term is used when a discount or refund is applied to an account?

• A. Adjustment
• B. Credit
• C. Rebate
• D. Deduction

Answer: (A)

Applying a discount or refund to a customer account is called an adjustment. This term covers any change made to the balance owed, including discounts granted, refunds issued, or other corrections to the bill. In billing systems, adjustments are the broad action that updates the account to reflect the new amount due. A credit is a specific entry that reduces the balance, but the general process of altering the account total is best described as an adjustment. A rebate is usually a separate incentive or post-purchase return, and a deduction is a subtraction used in contexts like payroll or taxes rather than the typical account balance change in billing.