If a Firm Grants Credit with Terms of 3/10 Net

question 118

Multiple Choice

If a firm grants credit with terms of 3/10 net 30, the creditor:

• A) Must pay a penalty of 3% when payment is made in more than 10 days after the sale
• B) Must pay a penalty for 10% when payment is made in more than 3 days after the sale
• C) Receives a discount of 3% when payment is made in less than 10 days after the sale
• D) Receives a discount of 10% when payment is made in less than 3 days after the sale

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Definitions:

Irrational Beliefs

Baseless or unreasonable thoughts that often lead to negative emotional outcomes or unproductive behaviors.

Inner Conflict

A psychological struggle within oneself arising from opposing demands or impulses.

General Adaptation Syndrome

A model that describes the body's physiological response to stress in three stages: alarm, resistance, and exhaustion.

Stressor

A situation or an event that causes the body to react (causes stress).