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Cash discount terms offered by trade creditors never be accepted because?

<p><span>a- Benefit in very small</span></p> <p><span>b- Cost is very high</span></p> <p><span><span>c- No sense to pay earlier</span></span></p> <p><span><span>d- None of the above</span></span></p> <p> </p>

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Question added by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town
Date Posted: 2014/12/09
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

What is wrong with accepting a Cash discount when you have excess cash to Pay?

It can be accepted if you are credit worthy and cash rich  and no avenues to cash on by additional revues alternatively which is higher the Cash discount offered.

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

d- None of the above

Basit Ali
by Basit Ali , Director of Engineering , Laverda Suites & Villas / Blue Bay Resorts

Option D

Muhammad Ahsan Yousaf
by Muhammad Ahsan Yousaf , Head of Planning and Reporting , Kohat Cement Company Limited

Option is D. Because Cash discount will be accepted if discount amount is more then revenue which could be earned if funds are invested somewhere else for that short while. 

Kamran Anjum
by Kamran Anjum , Head of Internal Audit , Rafhan Maize Products Company limited, Faisalabad, Pakistan, Ingredion Incorporated Gmbh

D) None of the above.

slaheddine rmida
by slaheddine rmida , Back Office Supervisor , Arab International Bank of Tunisia (BIAT)

 the   option D

Altaf Bhoon ACA
by Altaf Bhoon ACA , Assistant Finance Manager , Atlantic Maritime Group FZE

Option D is answer

mohamed Hakim CMA CPA Candidate
by mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia

Never accept cash discount depends on your cash balance and discount rate given 

Compare discount rate given and cost of fund if you invest it in aportfolio or bank rate

Answer d 

 

Fawzy Ahmed Salim El-Shabiby
by Fawzy Ahmed Salim El-Shabiby , Accountant , Servtel Information, Security, and Telecommunication Network Limited

D- Non of the above

THE ANSWER IS OPTION -  D

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