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Why is it generally expensive to grant a cash discount for prompt settlement of trade receivables? A Credit customers will be unlikely to take up

Why is it generally expensive to grant a cash discount for prompt settlement of trade receivables? A Credit customers will be unlikely to take up the cash discount. B Granting a discount will involve significant and complicated bookkeeping entries. C It is not possible to incorporate the cost of cash discounts into selling prices. D The discount must be compounded, generally revealing a high annualised cost.

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