Which of the following is true about the cost of trade credit? ...
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Finance
Which of the following is true about the cost of trade credit?
If a customer's short-term investment rate is more than the cost of trade credit, then the trade discount offers a better return over the short-term borrowing rate.
The annualized cost of trade credit decreases as the payment due date approaches.
A company increasing its credit terms from 1/10 net 30 to 1/15 net 35 will lead to a decrease in the cost of credit for its customers.
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