As the President of Harter Company, You Notice That No

question 145

Multiple Choice

As the president of Harter Company, you notice that no discounts have been taken when settling accounts payables.What would be an acceptable explanation?

• A)All invoices have credit terms of n/30.
• B)There is not sufficient cash to pay within the discount period.
• C)Discounts are missed because no one knows how to enter them in the new accounting software.
• D)The full amount of the invoice is being paid within the discount period and the treasurer is pocketing the discount amount.

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Definitions:

Productive

The efficiency with which inputs (such as labor and capital) are converted into outputs (goods and services).

Large Income

Substantial earnings or revenue, typically considerably higher than the average income, affording a high standard of living.

High Productivity

Indicates a significant output or efficiency in production or performance relative to the input of resources, time, or labor.

Technological Progress

The advancement and innovation in technology, leading to more efficient processes, improved products, and overall economic growth.