Which one of the following statements concerning cash discounts is correct? If the credit terms...
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Finance
Which one of the following statements concerning cash discounts is correct?
If the credit terms are 2/10, net 15, the buyer gains 15 days of credit by forfeiting the discount.
Cash discounts are relatively inexpensive for the seller.
Buyers should forego cash discounts since they are normally only 2% of the purchase price.
Cash discounts increase the amount of credit provided to customers.
A cash discount is a means of charging higher prices to credit customers.
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