Asked by Santi Contreras on Jul 13, 2024
Verified
Sellers always offer a discount to buyers for prompt payment toward purchases made on credit.
Prompt Payment
A financial discipline that involves settling debts quickly, often rewarded by suppliers with discounts.
- Acquire knowledge about the critical role of sales terms and conditions, including FOB shipping point and destination, purchase discounts, allowances, and returns, in the administration of revenues and expenses.
Verified Answer
KO
Krystle OcampoJul 19, 2024
Final Answer :
False
Explanation :
Not all sellers offer discounts for prompt payment; this practice, known as a cash discount, is optional and varies by seller and agreement terms.
Learning Objectives
- Acquire knowledge about the critical role of sales terms and conditions, including FOB shipping point and destination, purchase discounts, allowances, and returns, in the administration of revenues and expenses.
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