If a Company Is Given Credit Terms of 2/10 N/30

question 231

Multiple Choice

If a company is given credit terms of 2/10 n/30 it should

• A) hold off paying the bill until the end of the credit period while investing the money at 10% annual interest during this time.
• B) pay within the discount period and recognize a savings.
• C) pay within the credit period but don't take the trouble to invest the cash while waiting to pay the bill.
• D) recognize that the supplier is desperate for cash and withhold payment until the end of the credit period while negotiating a lower sales price.

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Definitions:

Phylum

A level of classification in the biological taxonomy that is one rank below kingdom and above class, grouping organisms based on general body plan.

Phylum

A rank in the biological classification system, or taxonomy, that is below Kingdom and above Class, grouping organisms based on a shared body plan or other major characteristics.

Phylum

A classification level in the biological taxonomy that ranks above class and below kingdom, used to group organisms that share a common basic structure.

Piagetian Perspective

A theory of cognitive development proposed by Jean Piaget that describes how children construct knowledge through interactions with their environment, emphasizing stages of development.