Which of the Following Is True of Cash Discount

question 109

Multiple Choice

Which of the following is true of cash discount?

• A) It increases bad debts because after availing discounts all customers may not pay.
• B) It decreases the investment in accounts receivable and increases the per unit profit.
• C) It helps to speed up collections without putting pressure on customers.
• D) It reduces sales because the customers feel that the products are of inferior quality.

---

Definitions:

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.

Exploitation

Taking unfair advantage of someone or a situation, often for personal gain, at the expense of others' welfare or rights.

Idealized Self-Image

For normal people, the self-image is an idealized picture of oneself built on a flexible, realistic assessment of one’s abilities. For neurotics, the self-image is based on an inflexible, unrealistic self-appraisal.

Tyranny of the Shoulds

A concept in psychology describing the oppressive burden of impossible expectations and standards one imposes on oneself, often leading to stress and unhappiness.