A Retailer Buys Christmas Merchandize from the Manufacturer on Sep

question 97

Multiple Choice

A retailer buys Christmas merchandize from the manufacturer on Sep.1.The manufacturer postdates the invoice to Dec.31, and the credit terms of the sale are 2/10, net 30.When is the payment due?

• A)Jan.10
• B)Jan.30
• C)Feb.10
• D)Sep.30

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Definitions:

Discounted Value

The present value of future cash flows discounted back to the present using a specific rate.

Future Earnings

Future earnings denote the projected income a company or individual is expected to generate over a specified future period.

Mutual Fund Products

Investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.

Under-Served Niche

A segment of the market that has not been adequately addressed or serviced by existing providers, often presenting opportunities for new entrants.