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Offering cash discount to customers result in

This question belongs to Commerce Financial Management
Financial Management
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Offering cash discount to customers result in _______.

Answer & Solution
Correct Answer: Option A
Offering cash discount to customers result in reducing the average collection period. A cash discount is a deduction allowed by some sellers of goods or by some providers of services in order to motivate customers to pay within a specified time. The cash discount is also referred to as an early payment discount.
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