Which of the following is correct?

Regarding accounts payable, a firm should take the cash discount if the cost of trade credit exceeds the cost of borrowing from the bank.

If the firm gives up the cash discount and accepts supplier credit, the firm should pay the bill on the first day of the net credit period.

Group of answer choices:

1 only.

2 only.

Neither 1 nor 2.

Both 1 and 2.