Treetop Nursery Offers Customer Credit Terms of 2/15 Net 30

question 276

Multiple Choice

Treetop Nursery offers customer credit terms of 2/15 net 30. This gives customers a

• A) 15 percent discount if they pay in two days.
• B) 2 percent discount if they pay in thirty days.
• C) 2 percent discount if they pay in fifteen days.
• D) 15 percent discount if they pay in thirty days.

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Definitions:

Shipping Fees

Charges applied for transporting goods from one location to another.

Hart-Scott-Rodino Act

U.S. legislation that requires large companies to file a report with the Federal Trade Commission and the Department of Justice before completing certain mergers, acquisitions, or transfers of securities.

Waiting Period

A mandated time interval between when an action is taken and when some related action may occur or when its effect comes into play.

Early Termination

The process of ending an agreement or contract prior to its originally agreed upon conclusion date.