Your company buys supplies on credit terms of 2/10 net 45.Suppose the company makes a purchase of $20,000 today.Which of the following payment options makes the most sense as a general rule?
A) Pay the bill as soon as possible to keep the supplier happy.
B) Pay the bill on day 45 due to the time value of money.
C) Pay the bill on day 10 to get the discount.
D) Either pay the bill on day 10 to get the discount, or wait until day 45.
Correct Answer:
Verified
Q47: Issuers of commercial paper usually maintain lines
Q103: Brown Inc.needs to borrow $250,000 for the
Q104: A bank is legally obligated to provide
Q105: Parsons Company has a cash flow problem.The
Q106: All of the following are likely to
Q108: Which of the following sources of short-term
Q109: In a chattel mortgage,specific items of inventory
Q110: Marley Financial plans to sell $50,000,000 of
Q111: Brown Inc.needs to borrow $250,000 for the
Q112: As a company accounts payable manager,which of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents