Multiple Choice
Which of the following is a valid reason for a company to forgo a discount on a purchase made under terms 2/10,n/30?
A) The company does not have the cash and would have to borrow funds to pay the invoice within the discount period.
B) The interest rate the company can earn on investments exceeds the annualized discount rate.
C) The company plans to return some of the merchandise before the end of the credit period.
D) Other suppliers offer a 1% discount for prompt payment.
Correct Answer:
Verified
Correct Answer:
Verified
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