Question

Offering a cash discount to customers for early payment of their invoices will likely:

Q: Answer-Offering a cash discount to customers for early payment of their invoices will likely:

A cash discount incentivizes customers to pay their bills sooner. This reduces the Days Sales Outstanding DSO, which is a component of the Cash Conversion Cycle CCC. A lower DSO leads to a shorter CCC, meaning cash is collected faster.

A Increase the average collection period.

B Have no impact on the cash conversion cycle.

C Shorten the cash conversion cycle.

D Increase bad debts.

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Offering a cash discount to customers for early payment of their invoices will likely:

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