Jenex Corp

question 186

Multiple Choice

Jenex Corp. has a credit policy that reads "2/10, net 30." This means that

• A) the company is offering a 10 percent discount if the customer pays within 2 days.
• B) the company will give a net reduction of 30 percent in the amount owed if the customer pays within 10 days.
• C) the customer will have to pay at least 10 percent of the bill by the end of 30 days.
• D) the customer will have to pay at least 30 percent of the bill by the end of 10 days.
• E) none of these.

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Definitions:

Outstanding Checks

Unprocessed checks that have been written and deducted from an account's balance but not yet presented for payment or cleared.

Check Register

A record book or ledger that tracks all checks written, deposits made, and current balance for a checking account.

Cash Balance

The total amount of cash in a company's account at any given time.

Deposits

The act of placing money into a financial account, or the money that is placed into such an account.