If a Company Purchases $3,200 Worth of Inventory with Terms

question 27

Multiple Choice

If a company purchases $3,200 worth of inventory with terms of 2/10, n/30 on March 3 and pays April 2, then the amount paid to the seller would be

• A) $3,150
• B) $3,136
• C) $3,200
• D) $3,168

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Definitions:

Diversification

The strategy of allocating investments or resources among various financial instruments, industries, or other categories to reduce risk.

Economic Losses

Financial shortfalls that occur when a firm's total costs surpass its total revenues, leading to a negative profit margin.

Positively Correlated

Describes a relationship between events such that each event is more likely to occur if the other event also occurs.

Diversification

Diversification is an investment strategy that involves spreading investments across various assets to reduce risk and increase the potential for returns.