Which of the Following Credit Terms Allows a Discount of 2

question 34

Multiple Choice

Which of the following credit terms allows a discount of 2% if payment is made within 10 days with the total amount of the invoice due within 60 days?

• A) 2/10, n/30
• B) 2/10, EOM/60
• C) 10/2, n/60
• D) 2/10, n/60

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Definitions:

High-Cost Goods

High-cost goods are items that require a considerable amount of money to purchase due to their quality, rarity, or other factors.

Sales Production

The process or activity of generating goods and services to meet consumer demand and generate revenue.

Consignment

Sales of goods through an agent who has possession but not ownership.

Title

The legal right to own, use, or dispose of something, such as property or intellectual property.