If a Firm Switched from Taking Trade Credit Discounts to Paying

question 82

True/False

If a firm switched from taking trade credit discounts to paying on the net due date, this might cost the firm some money, but such a policy would probably have only a negligible effect on the income statement and no effect whatever on the balance sheet.

---

Definitions:

Foot-in-the-door Technique

A persuasion strategy that involves getting a person to agree to a large request by first setting them up to agree to a modest request.

Persuasion

The act of convincing someone to do or believe something through reasoning or the use of emotional appeal.

Peripheral Arguments

Arguments that persuade by appealing to emotions or superficial associations rather than logic or reason.

Persuasion

The act or process of convincing someone to do or believe something through reasoning or the use of emotional appeal.