To Obtain the Maximum Possible Benefit from a Cash Discount

question 65

Multiple Choice

To obtain the maximum possible benefit from a cash discount of 2/10, n/30, the buyer should pay the invoice:

• A) immediately.
• B) on the last day of the discount period, i.e. in 10 days.
• C) at the end of the month.
• D) when the seller threatens legal action.

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Definitions:

Word-of-Mouth

The process by which consumers share information and opinions about products or services, typically considered a powerful form of marketing.

Profit Margins

A financial metric that indicates the percentage of revenue that remains as profit after accounting for costs and expenses.

Sales

The exchange of goods or services for money, constituting a basic activity and measure of success for most businesses.

Expenses

Costs incurred by a business or individual in the process of earning revenue.