Which of the following is true of cash discount?
A) It increases bad debts because after availing discounts all customers may not pay.
B) It decreases the investment in accounts receivable and increases the per unit profit.
C) It helps to speed up collections without putting pressure on customers.
D) It reduces sales because the customers feel that the products are of inferior quality.
C
You might also like to view...
The _____ license, issued only on formal applications, is a specific document authorizing exportation within specific limitations designated under the EAR.
A. limited B. validated export C. specific D. declaration
Under the law of agency, the ratification doctrine
A. Is not applicable to situations in which the party claiming to act as the agent for another has no express or implied authority to do so. B. Is designed to apply to situations in which the principal was originally incompetent to have made the contract himself, but who, upon becoming competent, ratifies. C. Requires the principal to ratify the entire act of the agent, and the ratification is retroactive. D. Applies only if the principal expressly ratifies the contract made on his behalf within a reasonable time in writing.