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Readme [11.4K]
2 years ago
7

In the books of seller, is deducted from the invoice price when the buyer pays earlier or on the date/term stipulated

Business
1 answer:
Nutka1998 [239]2 years ago
7 0

Answer:

In the books of seller, cash discount is deducted from the invoice price when the buyer pays earlier or on the date/term stipulated

Explanation:

  • An early payment discount or cash discount is the reduction in invoice price due to payment before the due date.
  • A number of factors should be considered to see how much discount should be provided . Some of them are: check the cash discount offered by competitors, and check the payment history of the customer.
  • This strategy helps close the gap in cash flow and boost the working capital.
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As their name describes, <em>nonprofit entities</em> are organizations whose main plan is not to have revenues out of their operations. They usually provide social services to different sectors of the population and can handle their operations mainly thanks to charity and donations. While making their budgets, these organizations cannot estimate their revenues since they cannot take donations for granted. Instead, they estimate their expenses since they will be incurred for sure.

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