A cash discount calls for a reduction in price if payment cannot be made within a specified time...
Question:
A cash discount calls for a reduction in price if payment cannot be made within a specified time period. True or False
Cash Discount:
Cash discount is offered on the basis of the credit terms that a seller offers the buyer on the basis of a business relationship. It calls for a reduction is price given some conditions are met.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answer
A cash discount calls for a reduction in price if payment cannot be made within a specified time period.
FALSE
The statement is incorrect because a...
See full answer below.
Learn more about this topic:
Get access to this video and our entire Q&A library
Operating Cycle & Cash Cycle: Definition & Calculations
from
Chapter 17 / Lesson 2The operating cycle and cash conversion cycle are both tools to evaluate the timeline of when a business will become profitable. Explore the calculations of each, and identify their importance to a business.
Related to this Question
Compute the cash cycle based on the following...
Compute the cash cycle based on the following...
Compute the cash cycle based on the following...
The operating cycle of a merchandiser with...
You have recently been hired to improve the...
ABC has Days Sales Outstanding (DSO) of 10.1...
Which of the following would shorten the firm's...
Which one of the following is most apt to delay...
A positive operating cycle would indicate that...
Consider the following financial statement...
The Manana Corporation had annual sales of $60...
Pretty Lady Cosmetic Products has an average...
Operating Cycle in Accounting: Definition & Formula
An operating cycle consists of lead time, production time, sales time, delivery time, and cash-collection time. Learn the definitions of the parts of the operating cycle, how long the operation cycles are for different industries, and the formula used for calculating the operating cycle in accounting.
Components of Credit Policy: Terms of Sale
Credit policy is a company's use and procedure regarding credit, whereby a purchase is paid over time rather than immediately. Learn about terms of sale, credit extension factors, and collection policies that businesses often use.
Managerial Accounting vs. Financial Accounting | Differences & Uses
Learn about the differences and similarities between financial accounting and managerial accounting. Learn the different uses of financial and managerial accounting.
What is Working Capital Management? - Definition & Examples
Working capital management is a method of balancing assets and liabilities in day-to-day operations. Examine how working capital management appears in action, and how data is used to forecast operational factors.
Zero-Based Budgeting: Definition, Advantages, Disadvantages & Examples
Zero-based budgeting is when the budgeting cycle requires every expenditure to be justified. Examine the definition, process, and examples of zero-based budgeting. Understand the advantages and disadvantages of this budgeting method.
Using Qualitative Data for Demand Forecasting
Qualitative data can be used to determine if there is demand for a product and how much demand there is. Learn more about demand forecasting, qualitative data, and how to use focus groups and surveys to forecast demand.
Transactional Analysis Therapy and the Role of the Counselor
Eric Berne's transactional analysis therapy was formulated for the counselor to work with the patient to create therapeutic goals. Learn more about this therapy, including the role of the counselor, who Eric Berne is, the philosophy of his therapy, and the strengths and limitations of it.
Receivables Management: Definition & Purpose
Receivables management is methods a business uses to keep track of what is purchased from it by credit. See how companies manage receivables management, understand why receivables management is important, and examine an example.
Long-Term Debt: Definition, Cost & Formula
Long-term debt is a liability that takes more than one year to pay off. Explore the definition and the cost of long-term debt, how long-term debt is issued, and the formula for calculating long-term debt.
Strategy Evaluation: Definition, Methods & Tools
In this lesson, we'll look at the steps in order to perform a strategy evaluation. We'll discuss key factors and will relate strategy evaluation to real life scenarios.
Government Securities Types & Examples | What are Government Securities?
Find out exactly what are government securities and learn about the government securities definition. Discover the purpose of government-backed securities and see how they are utilized in the financial world through their different types and examples.
Merchandise Management in Retail: Definition, Components & Categories
Merchandise management involves the planning and control of a retail store's inventory. Learn the definition and components of merchandise management, and explore merchandise hierarchy and categories.
What is What-If Analysis? - Definition & Examples
A what-if analysis is a process of decision-making where a business or person looks at all the choices that are possible based on limited information. Study the definition of what-if analysis, how it's used, and examples of this process.
Commercial Paper: Definition, Advantages & Disadvantages
A great way for companies with high credit ratings to raise short term cash for operating purposes is through commercial paper. Most large public companies issue commercial paper.
Project Feasibility Study: Definition & Steps
Project feasibility studies evaluate the potential for success when implementing a project based on technical demands, budget, and profitability. Explore the steps of conducting a feasibility study to inform project decisions.
Political Environment in International Business: Definition, Factors & Impact
The political environment in international business is elaborate and associated with significant risks that are worth weighing before engaging in international business. Explore more about the political environment in international business, including common political factors and their impact.
Three Levels of Organizational Planning
With any business, corporate planning is the glue holding company goals together. Discover how long-term goals are set with the three levels of organization planning: business/division planning, department/functional planning, and time horizon.
The Modigliani-Miller Theorem: Definition, Formula & Examples
The Modigliani-Miller (MM) theory is used to ease the investment decision-making process by looking at how a firm's capital structure affects its value. Examine the MM theorem developed by Nobel laureates Franco Modigliani and Merton Miller in-depth and review the MM theory on capital structure.
Corporate Governance Overview & Structure | What is Governance in Business?
Learn all about corporate governance. Understand what corporate governance is, learn the structure of corporate governance, and see examples of this concept.
Accounting Profit Formula & Examples | How to Find Accounting Profit
Learn about the accounting profit definition and formula. Learn how to use the accounting profit formula to calculate the net profit after deducting expenses.
Explore our homework questions and answers library
Browse
by subject