When a Buyer Receives an Invoice for $100 with Terms

question 178

Multiple Choice

When a buyer receives an invoice for $100 with terms of "2/15 net 30" she can expect to pay

• A)$100 if she pays anytime in the first 30 days.
• B)less than $100 if she pays during the first 15 days.
• C)$100 if she pays anytime during the first fifteen days.
• D)more than $100 if she pays between day fifteen and day thirty.
• E)the full $100 if she waits more than 30 days to pay.

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Definitions:

Expenses

The outflows or using up of assets as part of operations of a business to generate revenue.

Sales Tax Revenue

The income received by a government from the imposition of a tax on the sale of goods and services.

Sales Revenue

The earnings accumulated from the sale of products or services during a specific timeframe.

Cash

A company's most liquid asset, representing currency or assets that can be immediately converted into currency.