If an Invoice Lists the Terms of Trade Credit as 2/10

question 142

True/False

If an invoice lists the terms of trade credit as 2/10 net 30, it means that the supplier is offering a 10 percent cash discount off the invoice price if the buyer pays within 2 days.

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Definitions:

Realism

A philosophy that emphasizes the representation of the world in a truthful, objective manner, without idealization.

Continuum

A continuous sequence, range, or whole extent of items, elements, values, or conditions, where no part is fundamentally different from adjacent parts, although the extremes are quite distinct.

Reciprocal Inhibition

A psychological principle where the induction of a response incompatible with anxiety automatically leads to the reduction of anxiety.

Counterconditioning

A behavioral therapy technique where a negative or unwanted response to a stimulus is replaced with a positive one.