Question

The MAIN reason suppliers offer cash discounts is to try to encourage.

a. early payment,
b. larger orders,
c. new accounts,
d. multiple purchases

Answer 1

Step-by-step explanation:

A

Answer 2

The answer is A. Early payment

In Cash discounts, buyers will have the incentive to reduce the amount owed to the seller if they pay their liability faster than the Deadline

For example, the sellers can offer a 2 % discounts if the buyers make a payment within 10 days, while the actual deadline is 30 days