The Net Credit Period for a Company with Terms of 2/10,net

question 17

Multiple Choice

The net credit period for a company with terms of 2/10,net 30 is:

• A) 10 days.
• B) 20 days.
• C) 30 days.
• D) 40 days.
• E) None of these.

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Definitions:

Title Passes

Refers to the moment when ownership of goods is legally transferred from the seller to the buyer in a transaction.

Buyer Signs

Acts of formal agreement by a purchaser to terms or documents, such as contracts or purchase orders.

F.O.B. Shipping Point

F.O.B. shipping point is a term used in shipping agreements indicating that the buyer is responsible for the goods once the seller ships them, and must pay the shipping costs.

Freight

The charge paid for the transportation of goods, typically by sea, air, or land.