Which of the following is not necessarily true? Increasing the cash discount which a firm offers to its debtors for prompt payment will:
A) increase the net profit of the firm.
B) reduce the average collection period.
C) reduce average debtors.
D) All of the statements are true.

Question

Quizplus · Accepted Answer

Increasing the cash discount may or may not increase the net profit of the firm, depending on the balance between the cost of the discount and the benefit of prompt payment.

Which of the Following Is Not Necessarily True? Increasing the Cash