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Outline the reasons for giving cash discounts?
Giving cash discounts helps introduce your product/service to a first time buyer who otherwise might not have tried what you had to offer due to pricing. Sometimes a discount pricing can trigger a buy regardless of the discount and impulse buying is another good reason for offering discounts.
ARE Cash discounts AN asset or liability?
Cash discounts are a liability.
What does cash back facility mean for credit card?
Yes, most of the banks offer cash back facility as a credit card benefits. It basically means that you get discounts on purchases and utilities.
What are the different kinds of discount?
trade discounts, cash discounts, discount series and seasonal discounts
If I pay cash for a new car at a dealership, would I be able to get a discount?
Maybe. Many car dealerships do offer cash discounts, but it is often at the discretion of the individual dealership. Check with your local dealer for details.
How cash discount differ from trade discount?
Trade discounts are guranteed discounts a business is getting by purchasing from a seller. Cash discounts are OPTIONAL discounts that a buyer gets if they opt to pay their bill (invoice) earlier then the due date. The seller specifies in the invoice how many days earlier a buyer has to pay their bill to get the cash discount. If a cash discount is taken, it is applied after the trade discounts, but before shipping and handling charges.
What kind of benefits does a cash back card offer?
You can enjoy great credit card benefits with a cash back card. It offers major discounts on purchases of all kinds. You can get redemption on utility bills also.
When cash is paid to suppliers on account which section of the statement of cash flow is affected?
cash flows from operating activities
How can cash discounts improve cash collections?
Discout allowed incourage the debtors to avail discounts and save money and they tries to pay as quick as possible
Is Cash Discount received on cash sales?
Cash discounts are received on cash sales. The seller or provider often refers to the cash discount as a sales discount.
How would you establish good relationship with your suppliers?
Depending on your cash/credit posistion you can try this; Offer your suppliers better than average terms, offer to buy the first small round of supplies with cash and establish your need for this supplier. Next time order more supplies and ask and offer to pay for 75% in cash and ask for 25% of your order to be held on NET 30 terms, keep progressing in to this relationship and pay your credit terms on time. This builds faith with your suppliers. In time some of your suppliers "if asked" may go out much further if they know that your history is good. I recently had a supplier agree to go out 190 days on terms for a VERY large project that we undertook. It was a Gov Contract and my vendor knew that I was capable and the money would be there in time. Just be up front and honest, and that will get you most places you need to go.
Can you Give some examples of cash discount and trade discount?
can you give some example if cash discounts?
