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:

Type II Error

A statistical error that occurs when a test fails to reject a false null hypothesis, also known as a "false negative."

Mean Battery Life

The average duration that a battery can power a device before depletion, calculated from a sample or population of batteries.

Production Method

The process or technique used in the creation of goods and services, often categorized by levels of automation and labor requirements.

Mean Price

The average price of a set of products or securities, calculated by adding all prices together and dividing by the number of prices.