The Credit Terms Offered to a Customer by a Business

question 167

Multiple Choice

The credit terms offered to a customer by a business firm were 2/10, n/30, which means

• A)the customer must pay the bill within 10 days.
• B)the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date.
• C)the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date.
• D)two sales returns can be made within 10 days of the invoice date and no returns thereafter.

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Definitions:

Income

The monetary payment received for goods or services, or the earnings from investment over a particular period of time, typically measured on a monthly or annual basis.

Corner Handle

A small interactive icon or box at the corner of a graphical user interface element that allows for resizing or adjusting.

Resize

The action or process of changing the size of an object, such as an image, window, or text box.

Worksheet

A single page in a spreadsheet application, where users can organize, calculate, and analyze data in rows and columns.