The Terms on an Invoice Are 1/10, Net 30

question 13

Multiple Choice

The terms on an invoice are 1/10, net 30. The amount is paid within two days of receiving the invoice. The total before the discount is $250. What is the discount amount?

• A) $1.50
• B) $2.50
• C) $7.50
• D) $25.50

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Definitions:

Accounting Abuses

refers to the manipulation or misrepresentation of financial records and reports to conceal the actual financial condition or performance of an entity.

Overcharging Clients

The unethical practice of charging clients more than is fair or initially agreed upon for services or goods.

Fee-splitting

The practice of dividing professional fees for services with someone who referred a client or patient, often seen in the medical field.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.