Failure to take cash discounts from suppliers
A) typically makes little difference to a firm's financial well-being, since a business does not pay a high rate for use of a supplier's money.
B) typically makes a big difference to a firm's financial well-being, since a business pays a high rate for use of a supplier's money.
C) has no effect on cash flow.
D) will result in negative credit reports.

Question

Quizplus · Accepted Answer

Failing to take cash discounts means the firm is effectively paying a higher price for goods, which can be seen as a high implicit interest rate, negatively impacting financial well-being.

Failure to Take Cash Discounts from Suppliers