An Invoice Is Dated 28 April for $235

question 9

Multiple Choice

An invoice is dated 28 April for $235.00 and is shown with payment terms of 5/10, n/30. If the invoice is paid on 12 May, the amount to pay will be:

• A)$223.25.
• B)$211.50.
• C)$235.00.
• D)$230.00.

---

Definitions:

NSF Check

A check that cannot be processed because the drawer's account does not have sufficient funds, standing for "Non-Sufficient Funds."

Monthly Service Charge

A fee charged by a financial institution to maintain an account, often depending on the type of account or the balance maintained.

Bank Reconciliation

The process of comparing and adjusting the balance shown in a company’s bank statement with the amount appearing in the company’s own records.

Days' Cash on Hand

A financial metric that indicates how many days a company can continue to pay its operating expenses using only its available cash, without additional income or financing.