ACME Inc,Has Credit Terms of 2/15 Net 45

question 1

Multiple Choice

ACME Inc.,has credit terms of 2/15 net 45.Customers should take the discount and pay in 15 days if they CANNOT earn more than ________ (EAR) on their investments.

• A)17.81%
• B)27.86%
• C)24.83%
• D)16.55%

---

Definitions:

Open Price Term

In a contract, a provision that allows the price to be determined later based on agreed criteria or market conditions.

Finance Lease

A type of lease in which it is assumed that the lessee will use the leased asset for a significant portion of its useful life, and the lease payments cover the full cost of the asset along with providing a return to the lessor.

Secured Transaction

A financial agreement in which the borrower pledges collateral to the lender to secure repayment of a loan.

Cisg

The United Nations Convention on Contracts for the International Sale of Goods, a treaty providing a uniform framework for international commercial transactions.