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Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall
Edition 11ISBN: 978-1259535314Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall
Edition 11ISBN: 978-1259535314 Exercise 15
Cash discounts-ROI
a. Calculate the approximate annual rate of return on investment of the following cash discount terms:
1. ? 1/15, n30.
2. ? 2/10, n60.
3. ? 1/10, n90.
b. Which of these terms, if any, is not likely to be a significant incentive to the customer to pay promptly? Explain your answer.
a. Calculate the approximate annual rate of return on investment of the following cash discount terms:
1. ? 1/15, n30.
2. ? 2/10, n60.
3. ? 1/10, n90.
b. Which of these terms, if any, is not likely to be a significant incentive to the customer to pay promptly? Explain your answer.
Explanation
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Cash discounts - ROI
ROI: It is a perfo...
Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall
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