If a Vendor's Invoice States Terms of Sale of 2/10

question 141

Multiple Choice

If a vendor's invoice states terms of sale of 2/10 net 30, the implied annual cost of interest from foregoing the discount would be:

• A)18.25%
• B)2.0%
• C)12%
• D)36.5%

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Definitions:

Strike

A collective action taken by employees refusing to work, aiming to gain concessions from their employer, typically related to wages, benefits, or working conditions.

Wrongful Acts

Actions or behaviors that are illegal or morally incorrect.

Employer

An individual or organization that hires and pays for the services of workers or employees.

Employee

An employee is an individual who has entered into or works under the terms of a contract of employment, whether implied or explicit, providing work or services in exchange for compensation.