Discounts and credit terms, Finance Basics

Discounts and Credit Terms

Credit Terms

Credit terms involve both the length of the credit time and the discount specified.  The terms 2/10, n/30 means that a 2 percent discount is specified if the bill is paid before the tenth day after the date of invoice or else the total amount should be paid by the 30th day.

In assuming the credit terms to offer the firm should look at the profitability caused via longer credit and discount period or a higher rate of discount against rise cost.

Discounts

Varying the discount includes an attempt to speed up the payment of obtainable.  It can conclusion also in reduced bad debt losses.

Posted Date: 1/31/2013 8:17:55 AM | Location : United States







Related Discussions:- Discounts and credit terms, Assignment Help, Ask Question on Discounts and credit terms, Get Answer, Expert's Help, Discounts and credit terms Discussions

Write discussion on Discounts and credit terms
Your posts are moderated
Related Questions
Bases of Share Valuation Share valuation can be done on the basis of income and asset values. On the basis of income still a share will be entitled to two forms of income. For

Question   Clifton-Peters Ltd is a manufacturer of household goods located in Melbourne. They presently make and wholesale fruit juicers, blenders and baking equipment. The Gen

Different Risk-profile - Shareholders and Management Shareholders will generally prefer high-risk-high return investments while they are diversified that is they have many inv

Assume the managers of Fort Winston Hospital are setting the price on a new outpatient service. Here are the relevant data estimates. Variable costs $ 5.00 Annual fixed c

Example of Asset Based Valuation Extracted information from the books of Kent Limited.   Current liabilities Bank overdraft    Sh. 300,000

how can I get?

Actions of Shareholders in Agency Conflict a) Disposal of assets required like collateral for the debt in this. In this case the bondholder is exposed to more risk becaus

Earnings Yield Valuation EY is given via the earnings made with the business expressed like a percentage of the market price of the business that is The Formula For Earning

Finance Functions The functions of Financial Manager can broadly be split into two:  The Managerial Functions and The Routine functions. Managerial Finance Functions

Example of Baumol's Model ABC Ltd. creates cash payments of Shs.10, 000 per week.  The interest rate at marketable securities is 12 percent and every moment the company sells