A discount should only be taken where:
A)Cash flow is sufficient to support the early payment.
B)The discount offered is a reasonable inducement.
C)Corporate policy allows discounts to be taken.
D)All of the options are correct.

Question

Quizplus · Accepted Answer

All the options provided are valid considerations for taking a discount. Adequate cash flow ensures the company can afford early payment, a reasonable inducement means the discount is financially beneficial, and adherence to corporate policy ensures compliance with internal guidelines.

A Discount Should Only Be Taken Where