Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 19 - No. 12)
What is the effect of receiving a discount from a supplier on the business's cash flow?
Decreases cash outflow.
Increases cash outflow.
No impact on cash outflow.
Increases cash inflow.
Explanation
A discount reduces the amount of cash required to pay the supplier, decreasing cash outflow.
Comments (0)
