Which of the Following Is Correct Concerning Terms of Trade

question 64

Multiple Choice

Which of the following is correct concerning terms of trade credit of 4/10,EOM,net 90?

• A) The discount period expires on the last day of the month.
• B) The invoice becomes delinquent 90 days after the last day of the month.
• C) The discount period ends on the 10^th day of the following month.
• D) The discount period ends either 10 days after invoicing or at the end of the month, whichever is earlier.

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Definitions:

Ethics

A branch of philosophy that deals with questions about what is morally right and wrong, good and bad, fair and unfair.

Social Responsibility

The concept that businesses should balance profit-making activities with activities that benefit society; it involves developing businesses with a positive relationship to the society in which they operate.

Fiduciaries

Individuals or organizations that are entrusted to manage assets or wealth on behalf of another party and are required to act in the best interests of the beneficiary.

Duty of Care

The legal obligation to ensure the safety or well-being of others by taking reasonable precautions or actions to avoid acts of negligence.