Asked by Ashley Elizabeth on Jul 09, 2024
Verified
A firm can increase the size of the cash discount received by paying on the first day of the discount period rather than on the last day.
Cash Discount
A reduction in the invoice price offered by sellers to buyers for prompt payment of their bill, aimed at encouraging early payment.
- Grasp the importance and mechanics of managing cash flows, including the benefits and costs associated with different cash management strategies.
Verified Answer
MS
Marisa SerohijosJul 16, 2024
Final Answer :
False
Explanation :
The size of the cash discount is determined by the terms of the discount and does not change based on when within the discount period the payment is made.
Learning Objectives
- Grasp the importance and mechanics of managing cash flows, including the benefits and costs associated with different cash management strategies.
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