The Terms on an Invoice Are 3/10,n/25

question 96

Multiple Choice

The terms on an invoice are 3/10,n/25.This means that a:

• A)discount of 3% is allowed if the invoice is paid in 10 days.
• B)discount of 10% is allowed if the invoice is paid in three days.
• C)discount of 25% is allowed if the invoice is paid in 10 days.
• D)discount of 3% is allowed if the invoice is paid after 25 days.

Comprehend the criteria and purpose for preparing managerial accounting reports.

Understand the classification of costs as product or period costs and their impact on financial statements.

Recognize the characteristics and requirements of managerial accounting reports versus financial accounting reports.

Understand the importance of managerial accounting in planning, controlling, and decision making.

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Definitions:

Simplest Form

A mathematical expression is in its simplest form when it is reduced to the lowest terms possible.

Simplest Form

An expression simplified to its most basic components, where no further simplification is possible.

Dividing Fractions

The process of calculating the quotient of two fractions by multiplying the first fraction by the reciprocal of the second.

Simplest Form

The most reduced version of a mathematical expression, with no common factors or reducible elements.