A Purchaser Was Offered Terms of Trade Credit of 2/10

question 56

Multiple Choice

A purchaser was offered terms of trade credit of 2/10, net 30, with an invoice date of January 1.Which one of the following acts threatens creditworthiness?

• A)Taking the discount, paying on January 5.
• B)Taking the discount, paying on January 10.
• C)Ignoring the discount, paying on January 30.
• D)Ignoring the discount, paying on February 9.

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Definitions:

Cultural

Relating to the beliefs, practices, norms, and values of a group of people.

Organizational Control

The procedures and mechanisms used by a business to regulate its actions and align its behaviors with its objectives.

Ridicule

The act of making someone or something the object of scornful laughter by mocking or deriding them.

Executive Reality Check

A method or process where business leaders review and assess the current state and health of their organization, ensuring perceptions align with actual performance and strategies.