Which Statement Is True About Terms of Trade Credit of 2/10

question 7

Multiple Choice

Which statement is true about terms of trade credit of 2/10, net 30?

• A)A 10% cash discount is offered for payment before 30 days
• B)A 2% cash discount can be taken for payment before the 10th of the following month
• C)A 10% cash discount can be taken if paid by the second day after invoicing
• D)No cash discount is offered after the eleventh day