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:

Legal Sufficiency

The condition of an agreement or document meeting all required legal standards and formalities to be recognized as valid and enforceable in a court of law.

Adequacy

The quality or state of being sufficient for a particular purpose or in fulfilling requirements.

Legal Adequacy

The sufficiency of consideration in a contract that makes it legally binding and enforceable.

Bargained-for Exchange

A fundamental principle in contract law where both parties voluntarily agree to provide something of value to the other, forming a valid contract.