If the Prompt Payment Discount Is Foregone, Which of the Following

question 253

Multiple Choice

If the prompt payment discount is foregone, which of the following credit terms implies the customer is borrowing at a rate that is less than 20% (assume 365 days per year) ?

• A)2/10, net 30
• B)1.5/10, net 30
• C)1/10, net 20
• D)3/20, net 75
• E)All of the above imply borrowing at 20% or more.

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Non-profit Entities

Organizations that operate for charitable, educational, cultural, or social welfare purposes rather than for profit.

Service Costing System

An accounting method used for establishing the cost associated with providing a service.

Complexity

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