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:

Superficial to Deeply Entrenched

Superficial to Deeply Entrenched describes a progression from surface-level to deeply rooted or firmly established states or conditions.

Short-term Memory

A temporary storage system that holds a small amount of information in mind in an active, readily-available state for a short period of time.

Items

Individual objects, units, or components that are part of a larger set or list.

Less than

A mathematical term indicating that one quantity or number is smaller or lower in value when compared to another.