Which Statement Is True About Terms of Trade Credit of 2/10,net

question 101

Multiple Choice

Which statement is true about terms of trade credit of 2/10,net 30?

• A) A 10% cash discount is offered for payment before 30 days.
• B) A 2% cash discount can be taken for payment before the 10^th of the following month.
• C) A 10% cash discount can be taken if paid by the second day after invoicing.
• D) No cash discount is offered after the eleventh day.

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Definitions:

Approximate Price

An estimated cost given to consumers for a product or service, not necessarily the final price.

Tarot-Card Readings

A form of fortune-telling or divination using a deck of tarot cards to gain insight into the past, present, or future by posing a question to the cards.

Federal Trade Commission

A U.S. federal agency established to enforce laws related to consumer protection and competition between businesses.

Federal Communications Commission

A United States government agency responsible for regulating interstate and international communications via radio, television, wire, satellite, and cable.