What term describes a business transaction where payment is made immediately at the time of purchase?

The term that best describes a business transaction where payment is made immediately at the time of purchase is "cash purchase." A cash purchase involves the direct exchange of money for goods or services at the point of sale, meaning that the buyer provides the seller with cash or cash equivalents without any delay. This approach ensures that the seller receives the full payment upfront, thereby reducing credit risk and simplifying accounting procedures.

In contrast, a credit purchase refers to a transaction where the buyer receives the goods or services but pays for them later, which can introduce complexity in payment tracking and the potential for unpaid debts. A cash sale is often used interchangeably with cash purchase but can sometimes imply a broader context that includes immediate sales in a retail setting. Deferred payment indicates an agreement where payment is postponed to a future date, contrasting with the immediate settlement characteristic of a cash purchase.