Q152
Offering cash discount to customers result in _______.
A.
reducing the average collection period
AnswerB.
increasing the average collection period
C.
increasing sales
D.
decreasing sales
Answer: Option A
Solution
Answer: Option A
Solution:
Offering cash discount to customers result in reducing the average collection period. A cash discount is a deduction allowed by some sellers of goods or by some providers of services in order to motivate customers to pay within a specified time. The cash discount is also referred to as an early payment discount.