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:

Nylon Lock

A type of lock nut that uses a nylon insert to prevent loosening under vibration and torque.

Thread Pitch

The distance between threads on a screw or bolt, indicating the tightness or coarseness of the thread.

Bolt Size

The specification of a bolt, including diameter, length, and thread pattern, crucial for ensuring compatibility and strength in connections.

Diameter

A straight line passing from side to side through the center of a body or figure, especially a circle or sphere.