Which of the Following Would Have a Negative Impact on Cash

question 19

Multiple Choice

Which of the following would have a negative impact on cash flow?

• A) preparing an invoice quickly
• B) granting a cash discount
• C) paying an invoice before the due date
• D) aging accounts receivable

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Definitions:

Contractual Obligation

A duty or responsibility that is legally binding under the terms of a contract.

Obvious Terms

Conditions or elements in an agreement or contract that are clear and unmistakable to all parties involved, often not needing explicit statement or detailed explanation.

Quasi Contract

A fictional contract imposed on parties by a court in the interests of fairness and justice; usually, quasi contracts are imposed to avoid the unjust enrichment of one party at the expense of another.

Imposed

Enforced or applied by authority or necessity, often referring to laws, taxes, or penalties that are set upon individuals or entities.