A Firm's Credit Terms Specify "1/10 Net 30" and the Accounts

question 52

Multiple Choice

A firm's credit terms specify "1/10 net 30" and the accounts receivable days outstanding is 32 days. Which of the following can be concluded on the basis of this information?

• A) Most customers pay on time.
• B) The average customer pays two days late.
• C) All customers have paid within 32 days of purchase.
• D) All customers pay late.

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Definitions:

Deaths

The irreversible halt of all biological activities that keep an organism alive, signifying the conclusion of its existence.

Emigration

Movement of individuals out of a population.

Biotic Potential

Maximum possible population growth rate under optimal conditions.

Optimal Conditions

The most favorable environmental or operational settings at which a specific process, such as an enzyme activity, performs its best.