财务管理PPT ch10 account receivable and inventory management
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Accounts Receivable-PPT课件
3、坏账损失的会计处理方法： 直接转销法、备抵法 （1）所谓直接转销法是指企业在坏账发生时确认坏账损失， 即在某笔应收账款确实无法收回时确认坏账损失。确认时，一
方面增加当期费用，借记“管理费用”科目，另一方面冲减应
手账款，贷记“应收账款”科目。
（2）备抵法是根据收入与费用配比原则和稳健原则，预
先估计坏账损失数，提取坏账准备， 到确认坏账损失发生 时，直接抵减坏账准备。 采用备抵法的企业，应设置“坏账准备”科目核算坏账 准备的提取和转销情况。
时间
取得时
会计处理
借：应收账款 贷：主营业务收入 应交税费—应交增值税（销项税额） 计提坏账 借：资产减值损失 贷：坏账准备
持有期间
发生坏账
收回坏账 收款时
借：坏账准备 贷：应收账款
借：应收账款 贷：坏账准备 借：银行存款 贷：应收账款
借：银行存款 财务费用（发生现金折扣） 贷：应收账款
例3-2
备抵法的具体方法有四种：
A、销货百分比法：销货百分比法是以赊销金额的一定百分比作为
估计的坏账损失。 B、应收账款余额百分比法 应收账款余额百分比法是根据会计期末应收账款余额的一定比 例估计当期坏账准备余额，再据以确定当期应计提的坏账准备的方 法。坏账准备提取额的计算公式如下： 当年坏账准备提取额的=应收账款期末余额×坏账准备率+提取 坏账准备前的借方余额-提取坏账准备前的贷方余额。(每年计提的 坏帐准备金额都是＝年应收帐款*坏帐准备率， 年底多了要冲回， 少了要补提 ) C、应收账款账龄分析法：应收账款账龄分析法是根据应收账款账 龄长短来估计坏账损失的方法。 D.个别认定法:并不一定要求对每一笔应收账款逐一进行个别认定, 而是指企业在采用余额百分比法,账龄分析法等方法计提坏账准备 时,可以视具体情况对某项应收账款采用个别认定法.
【财务管理英文课件】Accounts Receivable and Inventory Management
to ?/10, net 60.
Current annual credit sales of $5 million are expected to be maintained.
The firm expects 30% of its credit customers (in dollar volume) to take the cash discount and thus increase A/R turns to 8.
early payment. For example, ? / 10 allows a cash discount in the first 10 days from the
invoice date.
Cash Discount -- A percent (%) reduction in sales or purchase price allowed for early payment of invoices. For example, ? / 10?allows the customer to take a 2% cash discount during the cash discount period.
Firm Collection Program
Credit Standards
Credit Standards -- The minimum quality of credit worthiness of a credit applicant
that is acceptable to the firm.
$333,333 - $166,667 = $166,666
Total investment in add. receivables
$33,334 + $166,666 = $200,000
Current annual credit sales of $5 million are expected to be maintained.
The firm expects 30% of its credit customers (in dollar volume) to take the cash discount and thus increase A/R turns to 8.
early payment. For example, ? / 10 allows a cash discount in the first 10 days from the
invoice date.
Cash Discount -- A percent (%) reduction in sales or purchase price allowed for early payment of invoices. For example, ? / 10?allows the customer to take a 2% cash discount during the cash discount period.
Firm Collection Program
Credit Standards
Credit Standards -- The minimum quality of credit worthiness of a credit applicant
that is acceptable to the firm.
$333,333 - $166,667 = $166,666
Total investment in add. receivables
$33,334 + $166,666 = $200,000
财务管理第十章
财务管理第十章
2020年7月23日星期四
After Studying Chapter 10,
you should be able to:
1. Define capital budgeting and identify the steps involved in the capital budgeting process.
• Generate investment proposals consistent with the firm’s strategic objectives.
• Estimate after-tax incremental operating cash flows for the investment projects.
The process of identifying, analyzing, and selecting
investment projects whose returns (cash flows) are
expected to extend beyond one year.
The Capital Budgeting Process
• The Capital Budgeting Process • Generating Investment Project
Proposals • Estimating Project “After-Tax
Incremental Operating Cash Flows”
What is Capital Budgeting?
5. Determine initial, interim, and terminal period “after-tax, incremental, operating cash flows” associated with a capital investment project.
2020年7月23日星期四
After Studying Chapter 10,
you should be able to:
1. Define capital budgeting and identify the steps involved in the capital budgeting process.
• Generate investment proposals consistent with the firm’s strategic objectives.
• Estimate after-tax incremental operating cash flows for the investment projects.
The process of identifying, analyzing, and selecting
investment projects whose returns (cash flows) are
expected to extend beyond one year.
The Capital Budgeting Process
• The Capital Budgeting Process • Generating Investment Project
Proposals • Estimating Project “After-Tax
Incremental Operating Cash Flows”
What is Capital Budgeting?
5. Determine initial, interim, and terminal period “after-tax, incremental, operating cash flows” associated with a capital investment project.
财务专业英语ppt课件
E1-2 Divide into groups as instructed by your professor and discuss the following:
a. How does the description of accounting as the "language of business" relate to accounting as being useful for investors and creditors?
a. Information used to determine which products to produce. b. Information about economic resources, claims to those resources,
and changes in both resources and claims. c. Information that is useful in assessing the amount, timing, and
•Definition of Accounting: business language information system basis for decisions
•Types of Accounting Information: (1)Financial Accounting: •Internal users
篮球比赛是根据运动队在规定的比赛 时间里 得分多 少来决 定胜负 的，因 此，篮 球比赛 的计时 计分系 统是一 种得分 类型的 系统
Contents
Chapter One
Chapter Two
Chapter Three Chapter Four
a. How does the description of accounting as the "language of business" relate to accounting as being useful for investors and creditors?
a. Information used to determine which products to produce. b. Information about economic resources, claims to those resources,
and changes in both resources and claims. c. Information that is useful in assessing the amount, timing, and
•Definition of Accounting: business language information system basis for decisions
•Types of Accounting Information: (1)Financial Accounting: •Internal users
篮球比赛是根据运动队在规定的比赛 时间里 得分多 少来决 定胜负 的，因 此，篮 球比赛 的计时 计分系 统是一 种得分 类型的 系统
Contents
Chapter One
Chapter Two
Chapter Three Chapter Four
Chapter 10 Accounts Receivable and Inventory Management 应收帐款和存货管理 财务管理(双语版) 教学课件
假定,无缺货成本,订货无+购置成本(单价一定时,与经济订货量无关)
=平均存货量×单位储存成本+每次订货成本×订货次数
TC(Q)=Q/2*C+O*S/Q
Q* 2O S C
3.Order Point 订货点 通常发出订单到收到存货之间有一段时滞---交货期(lead time) Order Point(OP)=Lead time ×Daily usage 再订货点=订货提前期×每日耗用量 4.Safety Stock 安全存货量(保险储备) 为防止需求量(耗用量)和交货期的不确定性而持有的存货 Order Point(OP)=(Average lead time ×Average daily
The optimal policy is the one that provides the greatest incremental benefit.最优的政策应是能提供最大增量收益的政策.
4.Collection Policy and Procedure收帐政策和程序
收帐费用越高,坏帐比率越低,平均收帐期就越短.
Trade-off the level of expenditures with the reduction in the cost of baddebt losses and savings due to the reduction in investment in receivables.
二、Inventory management and control 存货管理与 控制
Chapter 10 Accounts Receivable and Inventory Management 应收帐款和存货管理
3.Credit terms 信用条件(信用期间（credit period）、现金折扣
国际财务管理(原书第8版)课件PPTEun_CH10_Accessible
from €3 = $1 to €2 = $1 (3 of 10)
• Fixed Assets
– Net fixed assets of Current/Noncurrent, Monetary/Nonmonetary and Temporal: $1,000 is the Historic rate
– Current assets translated at the spot rate. – Noncurrent assets translated at the historical
rate in effect when the item was first recorded on the books.
© McGraw-Hill Education.
10-10
Temporal Method (2 of 3)
• Items carried on the books at their current value are translated at the spot exchange rate. e.g. €2 = $1
• Balance sheet account are translated at the current spot exchange rate if they are carried on the books at their current value.
• Items that are carried on the books at historical costs are translated at the historical exchange rates in effect at the time the firm placed the item on the books.
• Fixed Assets
– Net fixed assets of Current/Noncurrent, Monetary/Nonmonetary and Temporal: $1,000 is the Historic rate
– Current assets translated at the spot rate. – Noncurrent assets translated at the historical
rate in effect when the item was first recorded on the books.
© McGraw-Hill Education.
10-10
Temporal Method (2 of 3)
• Items carried on the books at their current value are translated at the spot exchange rate. e.g. €2 = $1
• Balance sheet account are translated at the current spot exchange rate if they are carried on the books at their current value.
• Items that are carried on the books at historical costs are translated at the historical exchange rates in effect at the time the firm placed the item on the books.
财务管理英文版.ppt
210
Total Equity $1,139
Total Liab/Equitya,b $2,169
a. Note, Assets = Liabilities + Equity.
b. What BW owed and ownership position.
c. Owed to suppliers for goods and services.
d. Unpaid wages, salaries, etc.
e. Debts payable < 1 year. f. Debts payable > 1 year. g. Original investment. h. Earnings reinvested.
Basket Wonders’ Income Statement
Financial Statement Analysis
Financial Statements A Possible Framework for Analysis Balance Sheet Ratios Income Statement and Income
Statement/Balance Sheet Ratios Trend Analysis Common-Size and Index Analysis
Ⅰ.Primary Types of Financial Statements
Balance Sheet
A summary of a firm’s financial position on a given date that shows total assets = total liabilities + owners’ equity. Income Statement
财务管理PPT教学课件幻灯片
一次性收付款项是指在某一特定时点上一次性 支付(或收取)，经过一段时间后再相应地一次性收 取(或支付)的款项 。
• 终值又称将来值，是现在一定量现金在未来某一 时点上的价值，俗称本利和。
• 现值又称本金，是未来某一时点上的一定量现金 折合到现在的价值。
(1)单利终值和现值的计算
在单利计算方式下，本金能带来利息，利息 必须在提出以后再以本金形式投入才能生利，否 则不能生利。
二、财务管理目标的协调
企业财务管理目标是企业价值最大化，根据这 一目标，财务活动所涉及的不同利益主体如何进行 协调是财务管理必须解决的问题。
（一）所有者与经营者的矛盾与协调
为了解决这一矛盾，应采取让经营者的报酬与 绩效相联系的办法，并辅之以一定的监督措施。
1.解聘；2.接收；3.激励
（二）所有者与债权人的矛盾与协调
所谓财务活动，是指资金的筹集、投放、使用、 收回及分配等一系列行为。从整体上讲，财务活动 包括以下四个方面： （一）筹资活动 （二）投资活动 （三）资金营运活动 （四）分配活动
二、财务关系 财务关系是指企业在组织财务活动过程中与
有关各方所发生的经济利益关系。 （一）企业与投资者之间的财务关系 （二）企业与债权人之间的财务关系 （三）企业与受资者之间的财务关系 （四）企业与债务人之间的财务关系 （五）企业与政府之间的财务关系 （六）企业内部各单位之间的财务关系 （七）企业与职工之间的财务关系
1．银行业金融机构 2．其他金融机构 （二）金融市场 1.金融市场的种类
（1）按期限划分为短期金融市场和长期金融市场 （2）按证券交易的方式和次数分为初级市场和次级市场
2.金融工具
金融工具若按期限不同可分为货币市场工具和 资本市场工具
（三）利率
• 终值又称将来值，是现在一定量现金在未来某一 时点上的价值，俗称本利和。
• 现值又称本金，是未来某一时点上的一定量现金 折合到现在的价值。
(1)单利终值和现值的计算
在单利计算方式下，本金能带来利息，利息 必须在提出以后再以本金形式投入才能生利，否 则不能生利。
二、财务管理目标的协调
企业财务管理目标是企业价值最大化，根据这 一目标，财务活动所涉及的不同利益主体如何进行 协调是财务管理必须解决的问题。
（一）所有者与经营者的矛盾与协调
为了解决这一矛盾，应采取让经营者的报酬与 绩效相联系的办法，并辅之以一定的监督措施。
1.解聘；2.接收；3.激励
（二）所有者与债权人的矛盾与协调
所谓财务活动，是指资金的筹集、投放、使用、 收回及分配等一系列行为。从整体上讲，财务活动 包括以下四个方面： （一）筹资活动 （二）投资活动 （三）资金营运活动 （四）分配活动
二、财务关系 财务关系是指企业在组织财务活动过程中与
有关各方所发生的经济利益关系。 （一）企业与投资者之间的财务关系 （二）企业与债权人之间的财务关系 （三）企业与受资者之间的财务关系 （四）企业与债务人之间的财务关系 （五）企业与政府之间的财务关系 （六）企业内部各单位之间的财务关系 （七）企业与职工之间的财务关系
1．银行业金融机构 2．其他金融机构 （二）金融市场 1.金融市场的种类
（1）按期限划分为短期金融市场和长期金融市场 （2）按证券交易的方式和次数分为初级市场和次级市场
2.金融工具
金融工具若按期限不同可分为货币市场工具和 资本市场工具
（三）利率
财务管理英文课件Accounts Receivable and Inventory Manageme
Credit Terms -- Specify the length of time over which credit is extended to a customer
and the discount, if any, given for early payment. For example, ?/10, net 30 .
Chapter 10
Accounts Receent
10-1
Accounts Receivable and Inventory Management
Credit and Collection Policies Analyzing the Credit Applicant Inventory Management and Control
($5 contribution) x (4,800 units) = $24,000
Additional receivables
($120,000 sales) / (4 Turns) = $30,000
Investment in add. receivables
($20/$25) x ($30,000) = $24,000
10-2
Credit and Collection Policies of the Firm
Quality of Trade Account
Possible Cash Discount
(1) Average Collection Period
(2) Bad-debt Losses
10-3
Length of Credit Period
receivables.
10-4
Credit Standards
and the discount, if any, given for early payment. For example, ?/10, net 30 .
Chapter 10
Accounts Receent
10-1
Accounts Receivable and Inventory Management
Credit and Collection Policies Analyzing the Credit Applicant Inventory Management and Control
($5 contribution) x (4,800 units) = $24,000
Additional receivables
($120,000 sales) / (4 Turns) = $30,000
Investment in add. receivables
($20/$25) x ($30,000) = $24,000
10-2
Credit and Collection Policies of the Firm
Quality of Trade Account
Possible Cash Discount
(1) Average Collection Period
(2) Bad-debt Losses
10-3
Length of Credit Period
receivables.
10-4
Credit Standards
财务管理 英文版PPT课件
1
Chapter
The Goals and Functions of Financial Management
Copyright © 2008 by The McGraw-Hill CompanieMs, IcnGc.rAalwl r-iHghitlsl/rIerswerivned.
Chapter Outline
– Cash and inventory management – Capital structure theory – Dividend policy
1-5
Modern Issues in Finance
• Focus has been on:
– Risk-return relationships – Maximization of return for a given level of risk – Portfolio management – Capital structure theory
– Income statements – Balance sheets – Statement of cash flows
• Finance links economic theory with the numbers of accounting
1-3
Evolution of the Field of Finance
• At the turn of the century: Emerged as a field separate from economics
• By 1930s: Financial practices revolved around such topics as:
– Preservation of capital – Maintenance of liquidity – Reorganization of financially troubled
Chapter
The Goals and Functions of Financial Management
Copyright © 2008 by The McGraw-Hill CompanieMs, IcnGc.rAalwl r-iHghitlsl/rIerswerivned.
Chapter Outline
– Cash and inventory management – Capital structure theory – Dividend policy
1-5
Modern Issues in Finance
• Focus has been on:
– Risk-return relationships – Maximization of return for a given level of risk – Portfolio management – Capital structure theory
– Income statements – Balance sheets – Statement of cash flows
• Finance links economic theory with the numbers of accounting
1-3
Evolution of the Field of Finance
• At the turn of the century: Emerged as a field separate from economics
• By 1930s: Financial practices revolved around such topics as:
– Preservation of capital – Maintenance of liquidity – Reorganization of financially troubled
会计学原理Accounts Receivable英文PPT
Jan. 18 Dr Allowance for Doubtful Accounts $250
Cr Accounts Receivable
$250
- Leonardo Dicaprio
Valuing Accounts Receivable
• If on May 11 Leonardo Dicaprio pays full his account previously written off,the entries are:
• Accounts receivable is a legally enforceable claim for payment from a bussiness to its customer for goods supplied and services rendered in execution of the customer's order.
$480
Cr Accounts Receivable $480
Valuing Accounts Receivable
• Direct Write-Off Method/直接核销法/
Eg: If Dreamwork determines on June 24 that it cannot collect $250 owed to it by its customer Johnny Depp, it recognizes the loss using the direct write-off method as follows:
ቤተ መጻሕፍቲ ባይዱstimating bad debts
• Percent of Receivables Method/应收账款百分 比法/
财务管理(PPT 214页) (2)-215页精品文档
财务管理
基础知识：会计、金融
财务/金融学（Finance）是研究资金流动和运作规律的科学。 内容：
1．宏观财务学(Macro-Finance)：主要研究国家和区域乃至 全球范围内的资金流动和运作规律，包括货币学，财政金 融学、金融市场学等。
2 ． 投 资 学 (Investment) ： 主 要 研 究 证 券 及 其 投 资 组 合 (portfolio)投资决策、分析与评价。
二、财务管理目标
3．企业价值最大化 企业价值=权益价值+债务价值
V
n t1
1 FCtF(1i)t
由公司未来的收益和风险决定：公司未来现金流量的大小及其时间分布，以
及未来现金流量的风险大小。
影响因素：
投资报酬率、风险、投资项目、资本结构、股利政策
社会责任
基本财务原理：
一项经营计划——例如一项新的投资，收购另一家公司，或者重新制定一 项计划——只有在其预期产生的未来净现金收益的现值超出实施这项计 划的初始现金支出时，才会增加公司的价值。
3．公司财务学(Corporate Finance)、企业财务学（Business Finance）、管理财务学(Managerial Finance)：主要研究 与企业的投资、筹资等财务决策有关的理论与方法及日常 管理，包括战略、计划、分析与控制等。
第一章 财务管理的基本概念
第一节 财务管理内容 第二节 财务管理目标 第三节 财务管理环境
第一节 财务管理内容
一、定义 二、企业财务活动 三、企业财务关系 四、财务管理的基本理论
一、定义
财务(finance)是指政府、企业和个人对货 币资源的获取和管理。
财务管理(financial management)是研究企 业对资金的筹集、计划、使用和分配，以 及与上述财务活动有关的企业财务关系。
基础知识：会计、金融
财务/金融学（Finance）是研究资金流动和运作规律的科学。 内容：
1．宏观财务学(Macro-Finance)：主要研究国家和区域乃至 全球范围内的资金流动和运作规律，包括货币学，财政金 融学、金融市场学等。
2 ． 投 资 学 (Investment) ： 主 要 研 究 证 券 及 其 投 资 组 合 (portfolio)投资决策、分析与评价。
二、财务管理目标
3．企业价值最大化 企业价值=权益价值+债务价值
V
n t1
1 FCtF(1i)t
由公司未来的收益和风险决定：公司未来现金流量的大小及其时间分布，以
及未来现金流量的风险大小。
影响因素：
投资报酬率、风险、投资项目、资本结构、股利政策
社会责任
基本财务原理：
一项经营计划——例如一项新的投资，收购另一家公司，或者重新制定一 项计划——只有在其预期产生的未来净现金收益的现值超出实施这项计 划的初始现金支出时，才会增加公司的价值。
3．公司财务学(Corporate Finance)、企业财务学（Business Finance）、管理财务学(Managerial Finance)：主要研究 与企业的投资、筹资等财务决策有关的理论与方法及日常 管理，包括战略、计划、分析与控制等。
第一章 财务管理的基本概念
第一节 财务管理内容 第二节 财务管理目标 第三节 财务管理环境
第一节 财务管理内容
一、定义 二、企业财务活动 三、企业财务关系 四、财务管理的基本理论
一、定义
财务(finance)是指政府、企业和个人对货 币资源的获取和管理。
财务管理(financial management)是研究企 业对资金的筹集、计划、使用和分配，以 及与上述财务活动有关的企业财务关系。
财务会计与财务管理知识学(PPT 60页)
The Allowance for Doubtful Accounts
The net realizable value is the amount of accounts receivable that the business expects to collect.
Accounts receivable Less: Allowance for doubtful accounts Net realizable value of accounts receivable
GENERAL JOURNAL
Date
Account Titles and Explanation Uncollectible Accounts Expense
Allowance for Doubtful Accounts
Debit $$$$
Credit $$$$
Selling expense
Contra-asset account
财务会计与财务管 理知识学(PPT 60页)
Ch4 Learning Objectives
1. Revenue Recognition 2. Revenue Measurement 3. Accounts Receivable and bad debts 4. Earnings Management
（一）已将商品所有权上的主要风险和报酬 转移；
（二）既没有保留通常与所有权相联系的继 续管理权，也没有对已售出的商品实施有效控 制；
（三）收入的金额能够可靠地计量； （四）相关的经济利益很可能流入企业； （五）相关的成本能够可靠地计量。
收入确认的具体标准 ——按不同经营业务
◆一些特殊情形下的具体确认标志：
财务管理的基本概念PPT课件
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普通年金终值计算
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The firm is currently producing a single product with variable costs of $20 and selling price of $25.
Relaxing credit standards is not expected to affect current customer payment habits.
10-13
Example of Relaxing the Credit Period
New receivable level
Investment in add. receivables (original sales) Total investment in add. receivables Req. pre-tax return on add. investment
10-8
Profits > Required pre-tax return
Credit and Collection Policies of the Firm
Quality of Trade Account Length of Credit Period
(1) Average Collection Period
The before-tax opportunity cost for each dollar of funds “tied-up” in additional receivables is 20%.
Ignoring any additional bad-debt losses that may arise, should Basket Wonders relax their credit standards?
10-15
Firm Collection Program
Credit Terms
Cash Discount Period -- The period of time during which a cash discount can be taken for early payment. For example, “2/10” allows a cash discount in the first 10 days from the invoice date.
10-14
($2,000,000 sales) / (6 Turns) = $333,333
$333,333 - $166,667 = $166,666 $33,334 + $166,666 = $200,000 (20% opp. cost) x $200,000 = $40,000
Yes!
Profits > Required pre-tax return
Accounts Receivable and Inventory Management
Credit and Collection Policies Analyzing the Credit Applicant Inventory Management and Control
10-2
Credit and Collection Policies of the Firm
($5 contribution) x (4,800 units) = $24,000
($120,000 sales) / (4 Turns) = $30,000 ($20/$25) x ($30,000) = $24,000 (20% opp. cost) x $24,000 = $4,800
Yes!
10-16
Example of Introducing a Cash Discount
A competing firm of Basket Wonders is considering changing the credit period from “net 60” (which has resulted in 6 A/R “Turns” per year) to “2/10, net 60.”
10-4
Credit Standards
Costs arising from relaxing credit standards
10-5
A larger credit department
Additional clerical work Servicing additional accounts Bad-debt losses Opportunity costs
Current
annual credit sales of $5 million are expected to be maintained.
பைடு நூலகம்dditional
10-11
Example of Relaxing the Credit Period
The
before-tax opportunity cost for each dollar of funds “tied-up” in additional receivables is 20%.
The
firm is currently producing a single product with variable costs of $20 and a selling price of $25. annual credit sales of $250,000 from new customers are forecasted, in addition to the current $2 million in annual credit sales.
Credit Period -- The total length of time over which credit is extended to a customer to pay a bill. For example, “net 30” requires full payment to the firm within 30 days from the invoice date.
Credit and Collection Policies of the Firm
Quality of Trade Account Length of Credit Period
(1) Average Collection Period
(2) Bad-debt Losses Possible Cash Discount
10-10
Example of Relaxing the Credit Period
Basket Wonders is considering changing its credit period from “net 30” (which has resulted in 12 A/R “Turns” per year) to “net 60” (which is expected to result in 6 A/R “Turns” per year).
The financial manager should continually lower the firm’s credit standards as long as profitability from the change exceeds the extra costs generated by the additional receivables.
(2) Bad-debt Losses Possible Cash Discount
10-9
Firm Collection Program
Credit Terms
Credit Terms -- Specify the length of time over which credit is extended to a customer and the discount, if any, given for early payment. For example, “2/10, net 30.”
Credit Standards -- The minimum quality of credit worthiness of a credit applicant that is acceptable to the firm. Why lower the firm’s credit standards?
10-7
Example of Relaxing Credit Standards
Profitability of additional sales
Additional receivables Investment in add. receivables Req. pre-tax return on add. investment
Chapter 11
Accounts Receivable and Inventory Management
10-1 © 2001 Prentice-Hall, Inc. Fundamentals of Financial Management, 11/e Created by: Gregory A. Kuhlemeyer, Ph.D. Carroll College, Waukesha, WI
Cash Discount -- A percent (%) reduction in sales or purchase price allowed for early payment of invoices. For example, “2/10” allows the customer to take a 2% cash discount during the cash discount period.