In the Context of Credit Terms,2/10,n/30 Indicates a Discount of Two-Tenths

question 12

True/False

In the context of credit terms,2/10,n/30 indicates a discount of two-tenths from a bill if it is paid within 30 days.

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Definitions:

Credit Analysis

The process by which a lender evaluates the creditworthiness of a potential borrower, assessing the ability to repay a loan.

Likelihood

The probability or chance of an event occurring or a hypothesis being correct.

Pay

Remuneration given by an employer to an employee for their labor or services.

Credit Period

The duration during which a buyer can pay for purchased goods or services without incurring interest or penalties.