--%>

Advantages for giving Cash Discount

What are various advantages for giving Cash Discount?

E

Expert

Verified

Advantages for giving Cash Discount:

A) It enhances cash flow or liquidity.

B) It too raises ability to pay since buyer sees discount as income therefore, he will surely to pay and its result will on his capability to pay.

C) Sometime cash discount is obliging for good bargaining with the seller.

   Related Questions in Financial Accounting

  • Q : What is Asset Management Asset

    Asset Management: The Asset management has two common definitions, one associating to advisory services and the other associated to corporate finance. In the initial instance, an advisor or financi

  • Q : Report on Business memo analyzing

    Write a Report on Business memo analyzing monthly sales of a company. Try to explain it with graphs.

  • Q : Define Margin Improvement Margin

    Margin Improvement: Margins in the business remained beneath pressure, even previous to the economic downturn for the industry as an entire, returns on capital have continued under the cost of capital. Previous to the falls in the second half of the y

  • Q : Prepare relevant ledger accounts

    Journalize the below transactions, prepare relevant ledger accounts and finally trial balance. . XYZ Pvt Ltd 01.01.2009 Started business

  • Q : Fundamental characteristics of

    State the fundamental characteristics of bureaucracies.

  • Q : Eliminating exposure of the currency

    Banks find it essential in order to accommodate their client’s requirements for buying or selling foreign exchange forward, in several instances for the hedging purposes.  How the bank can eliminate the exposure of the currency it has made for itself by acc

  • Q : Call Option-Out of the money Explain

    Explain the terminology that an option is in-, at-, or out-of-the-money?

  • Q : Methods handling translation gains and

    How translation gains and losses are handled differently as per current rate method as compared to the other three methods, which is, monetary/nonmonetary method, current/noncurrent method, and the temporal method?

  • Q : What do you mean by the term turnover

    What do you mean by the term turnover?

  • Q : Purpose of Export-Import Bank State the

    State the purpose of Export-Import Bank?