If a firm fails to take trade credit discounts,then it may cost the firm some money,but generally such a policy has a negligible effect on the firm's income statement and no effect on its balance sheet.

Question

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Failing to take trade credit discounts can significantly increase the cost of purchases, affecting both the income statement through higher expenses and the balance sheet by potentially increasing liabilities or reducing cash assets.

If a Firm Fails to Take Trade Credit Discounts,then It