Which One of the Following Statements Is Correct

question 12

Multiple Choice

Which one of the following statements is correct?

• A)The credit period begins when the discount period ends.
• B)The discount period is the length of time granted to a customer to pay for a purchase.
• C)The credit period begins on the invoice date.
• D)With terms of 2/10, net 30, the net credit period is 20 days.
• E)With EOM dating, all sales are assumed to have occurred on the 15^th of each month.

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Definitions:

Repurchasing Capital Stock

A corporate action in which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

Negative Free Cash Flow

A situation where a company's cash outflows exceed its cash inflows during a specific period, indicating potential financial difficulties.

Free Cash Flow

The amount of cash generated by a company after accounting for operational expenses and capital expenditures.

Poor Performance

A situation where an individual or entity fails to meet established standards or expectations in terms of output, efficiency, or effectiveness.