If a Company Sells Merchandise with Credit Terms 2/10 N/30,the

question 233

True/False

If a company sells merchandise with credit terms 2/10 n/30,the credit period is 30 days and the discount period is 10 days.

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Definitions:

Expense Recognition Principle

An accounting principle that dictates expenses should be recognized in the period in which they are incurred to earn revenues.

Efforts

The use of physical or mental energy to achieve tasks and goals.

Accomplishments

Achievements or completed goals that an individual or organization has successfully attained.

Revenue Recognition Principle

An accounting guideline stating that revenue should be reported when it is earned and realizable, regardless of when the cash is received.