--%>

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 : Political risk in capital budgeting How

    How would you include political risk within the capital budgeting process of foreign investment projects?

  • Q : Political events affecting the local

    Discuss about the different ways in which the political events in the host country affects the local operations of MNC.

  • Q : Financial hedging of firm’s operating

    List disadvantages and advantages of the financial hedging of firm’s operating exposure through the operational hedges (like relocating the manufacturing site)?

  • Q : Stages in the life cycle of a family

    There are seven typical stages in the life cycle of a family with children. Fully explain and give an example to describe each of those seven stages.

  • Q : Cross-border acquisitions and green

    Why host country resist cross-border acquisitions, instead of the green field investments? Explain your point of view?

  • Q : Policy issued by upper management What

    What would you do when upper management issues a new policy and it was problematic to you? Would you pursue the new policy?

  • Q : International and financial management

    Explain, how international financial management is different from the domestic financial management?

  • Q : Creative thinking & Problem solving

    General Instructions: In composing your responses to all tasks, please use full sentences and pay careful attention to spelling, grammar, punctuation, and clarity of expression. Both the content of your work and its present

  • Q : Development phases of Friendship There

    There are six developmental phases of how friendships develop. Identify each phase in sequence and discuss the characteristics of each phase by using real or hypothetical example to illustrate this developmental path.

  • Q : Introduction of the term Financial

    Give a brief introduction of the term ‘Financial Accounting’. And also write down its elements?