A 2/10,net 30 Credit Policy

question 21

Multiple Choice

A 2/10,net 30 credit policy:

• A)is an expensive form of short-term credit if a buyer foregoes the discount.
• B)provides cheap financing to the buyer for 30 days.
• C)is an inexpensive means of reducing the seller's collection period if every customer takes the discount.
• D)tends to have little effect on the seller's collection period.
• E)tends to increase a firm's investment in receivables as compared to a straight net 30 policy.

Learn the strategies for writing effective business messages, including the application of direct and indirect strategies based on the situation.

Understand the legal and ethical considerations in business communications, especially when responding to claims and criticisms online.

Recognize the role of mood (imperative, indicative) in conveying the tone in business writing and how it affects reader perception.

Understand the significance of timing and mood in responding to customer communications and the impact on customer satisfaction and retention.

---

Definitions:

Taxable Income

The amount of an individual's or corporation's income used to determine how much tax is owed to the government in a given tax year.

Schedule L

Schedule L is a tax form used by certain businesses to report their balance sheet details to the IRS, including assets, liabilities, and equity.

Schedule M-1

A form used by corporations filing U.S. federal corporate income taxes to reconcile financial statement income with tax return income.

Total Receipts

The total amount of money received by a business during a specific period, including sales, income, donations, and other forms of revenue.