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:

Rapid Test

A diagnostic test designed to provide quick results, often used in medical screening for various conditions.

Bilirubin

A yellow compound that occurs in the normal catabolic pathway that breaks down heme in vertebrates and is excreted in bile.

Catheterization

To insert a catheter into a cavity (e.g., urinary bladder to remove urine) to remove body fluid.

Reagent Strips

Strips used in medical diagnostics to test fluids for the presence of various substances, such as glucose or protein.