If a Firm Sells on Terms of 2/10 Net 30

question 64

True/False

If a firm sells on terms of 2/10 net 30 days, and its DSO is 28 days, then the fact that the 28-day DSO is less than the 30-day credit period tells us that the credit department is functioning efficiently and there are no past-due accounts.

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Definitions:

Nutritionally Poor

Describes food that lacks in essential nutrients needed for maintaining healthy bodily functions.

Unappetizing

Describes food that looks or tastes unattractive and does not stimulate the desire to eat.

Instinctive Behavior

Innate, unlearned behaviors that are triggered by specific stimuli, common in animals and inherent in their survival.

Unlearned

Referring to behaviors or responses that are not acquired through learning or conditioning but are naturally occurring or innate.