As a Company Accounts Payable Manager,which of the Following Credit

question 11

Multiple Choice

As a company accounts payable manager,which of the following credit terms are most likely to entice you to take the cash discount?

• A) 1/10 net 45
• B) 2/10 net 60
• C) 1/10 net 30
• D) 2/10 net 90

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Definitions:

Liquidation Expenses

Costs associated with the process of winding down a company's business operations and distributing its assets to claimants.

Carrying Amount

The book value of an asset or liability on a company's balance sheet, reflecting adjustments like depreciation or amortization.

Loan Receivable

An amount of money that is loaned to another party in exchange for future repayment of the loan value or principal amount, along with interest or other finance charges.

Journal Entry

A record in accounting that documents a business transaction in the double-entry bookkeeping system.