Which of the following statements are true regarding sales discounts (i.e., discounts customers receive for paying quickly)? I. Net Income differs between the net and gross methods when customers do not pay within the discount period. II. The net and gross methods do not affect the amount or timing of cash collected. III. Customers have to elect in advance whether they will pay in time to take the discount. Group of answer choices: I only II only III only I and II only II and III only
Which of the following statements are true regarding sales discounts (i.e., discounts customers receive for paying quickly)? I. Net Income differs between the net and gross methods when customers do not pay within the discount period. II. The net and gross methods do not affect the amount or timing of cash collected. III. Customers have to elect in advance whether they will pay in time to take the discount. Group of answer choices: I only II only III only I and II only II and III only
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following statements are true regarding sales discounts (i.e., discounts customers receive for paying quickly)?
I. Net Income differs between the net and gross methods when customers do not pay within the discount period.
II. The net and gross methods do not affect the amount or timing of cash collected.
III. Customers have to elect in advance whether they will pay in time to take the discount.
Group of answer choices:
I only
II only
III only
I and II only
II and III only
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