Victoria Nursery Offers Customers Credit Terms of 3/15 Net 30

question 58

Multiple Choice

Victoria Nursery offers customers credit terms of 3/15 net 30.This gives customers a:

• A)three percent discount if they pay in fifteen days.
• B)fifteen percent discount if they pay in three days.
• C)fifteen percent discount if they pay in thirty days.
• D)three percent discount if they pay in thirty days.

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Definitions:

Consolidation

The process of combining financial information from several departments or subsidiaries within a company into a single financial statement.

Controlling Financial Interest

A situation where an entity has the power to govern the financial and operating policies of another entity so as to benefit from its activities.

Consolidated Retained Earnings

The accumulated net income of a corporation and its subsidiaries after dividends have been paid out to shareholders, presented in the consolidated financial statements.

Acquisition

The act of obtaining control of another company by purchasing its shares or assets.