Credit Terms "2/10, N/30" Mean That If Payment Is Made

question 162

True/False

Credit terms "2/10, n/30" mean that if payment is made in two days, a 10% discount will be given; if not paid within two days, the full invoice price will be due in thirty days.

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Definitions:

Income Tax Liability

The amount of tax that an individual or corporation owes to the government based on their income earnings for the fiscal year.

Deferred Tax Liability

A tax obligation that a company owes but is not yet required to pay, resulting from temporary differences between the company's accounting and tax treatment of assets and liabilities.

Revenue

The total income generated by a company from its normal business operations.

Taxable

Pertaining to income or transactions subject to tax by governmental authorities.