Company a Sells $500 of Merchandise on Account to Company

question 79

Multiple Choice

Company A sells $500 of merchandise on account to Company B with credit terms of 2/10, n/30.If Company B pays within the discount period, how much cash will Company A receive?

• A)$400
• B)$410
• C)$490
• D)$500

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Definitions:

Gross Margin Percentage

A financial metric that measures the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period.

Provided Data

Information or statistics made available or given to support analysis, decision-making, or reporting.

Return on Total Assets

A financial ratio that measures the profitability of a company in relation to its total assets, indicating how efficiently a company is using its assets to generate profit.