When a company liberalizes its cash discount policy

Related MCQs

• The credit policy of Spurling Products is "1.5/10, net 35." At present 30% of the customers take the discount, 62% pay within the net period, and the rest pay within 45 days of invoice. What would receivables be if all customers took the cash discount?
• The discount rate which equates the present value of cash inflows with the present value of cash out flows is called -------
• Which of the following recognizes risk in capital budgeting analysis by adjusting estimated cash flows and employs risk free rate to discount the adjusted cash flows?
• If the Money Discount Rate is 19% and Inflation Rate is 12%, then the Real Discount Rate is:
• In Risk-Adjusted Discount Rate method, the normal rate of discount is:
• Kanji Company had sales last year of Rs. 265 million, including cash sales of Rs. 25 million. If its average collection period was 36 days, its ending accounts receivable balance is closest to . (Assume a 365-day year.)
• Cash Discount term 3/15, net 40 means
• If cash discount is offered to customers, then which of the following would increase?
• Cash discount terms offered by trade creditors never be accepted because
• ____________ is the length of time between the firm’s actual cash expenditure and its own cash receipt.