Final answer:
True. Independent validation of vendor invoices helps ensure appropriate cash discounts are obtained.
Step-by-step explanation:
True. Independent validation of vendor invoices helps ensure that appropriate cash discounts are obtained. When companies receive invoices from vendors, they need to verify the accuracy and completeness of the invoice details before making payment. Independent validation involves reviewing the invoices to confirm that the prices, quantities, and agreed-upon terms are correct.
By conducting independent validation, businesses can catch errors or discrepancies in the invoices, allowing them to rectify the issues before submitting payment. This process helps ensure that the company only pays for what was actually received and that they are taking advantage of any applicable cash discounts offered by the vendors.
For example, if a vendor offers a 2% discount for early payment within 10 days, independent validation would help identify invoices that qualify for the discount and allow the company to take advantage of it. This can help save money and improve cash flow for the business.