A Firm Sells on Terms of 2/10 Net 30 Days

question 54

True/False

a firm sells on terms of 2/10 net 30 days, and its DSO is 28 days, then the fact that the 28-day DSO is less than the 30-day credit period tells us that the credit department is functioning efficiently and there are no past-due accounts.

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Definitions:

Protective Tariff

A levy placed on foreign goods to safeguard local industries by increasing the cost of imports, hence reducing their attractiveness compared to domestic products.

Imported Wine

Wine that is brought into a country from another country, typically for retail and consumption within the importing country.

Exchange Rates

The price of one currency in terms of another for conversion purposes.

National Governments

The organization that leads a country, making and enforcing laws, and managing public resources and services.