If a Firm's Payment Terms for Sales Made on Account

question 25

Multiple Choice

If a firm's payment terms for sales made on account to its customers were 2/10, n30, the number of days' sales in accounts receivable would be expected to be:

• A)less than 10.
• B)between 10 and 25.
• C)between 25 and 40.
• D)over 40.

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Definitions:

Blind Person

An individual who lacks visual perception due to physiological or neurological factors beyond normal refractive errors.

Reasonable Person Standard

A legal standard used to determine what a hypothetical reasonable person would do in a particular situation.

Voluntary Intoxication

A state of being inebriated or drunk by one's own choice, which can affect one's legal liability or capacity in certain legal contexts.

Trespassers

People who go onto or stay on premises without having been given consent or lawful authority.