Under Which of the Following Payment Terms Is Payment Due

question 8

Multiple Choice

Under which of the following payment terms is payment due in 30 days,but the payer will get a 1% discount if payment is made within 7 days?

• A)7%30/Net 10
• B)1%7/Net 30
• C)Net 7/30
• D)7%1/Net 30

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Definitions:

Net Income

The amount of earnings left over after all expenses, including taxes and cost of goods sold, have been subtracted from total revenue, indicating the financial success or profitability of a company over a specified period.

Extraordinary Items

Events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence, significantly impacting a company's financial position.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the IFRS Foundation and the International Accounting Standards Board to ensure global consistency and transparency in financial reporting.

U.S. GAAP

Generally Accepted Accounting Principles in the United States, a framework of accounting standards, principles, and procedures.