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:

Religious Involvement

Participation or engagement in practices, beliefs, or activities associated with a religious faith or community.

Longevity

The length or duration of a person's life, often associated with factors that contribute to a long and healthy life.

Nonexistent

Indicates something that does not exist or is not present in any form or context.

Blood Pressure Increase

A rise in the force exerted by circulating blood on the walls of blood vessels, often indicating hypertension or other health conditions.