When Cal went to purchase a new filter for his aquarium,he noticed that the pet shop offered a 10% discount for patrons who paid in cash.Why would the pet store make this offer?
A) To decrease its accrued liabilities
B) To decrease its liquidity
C) To ease the financial burden of accounts receivable
D) To increase its fixed assets
E) To increase its inventory turnover

Question

Quizplus · Accepted Answer

By making credit a less attractive option, the pet shop is hoping to reduce the number of accounts receivable.

When Cal Went to Purchase a New Filter for His