Tangshan Mining Was Extended Credit Terms of 3/15 Net 30

question 49

Multiple Choice

Tangshan Mining was extended credit terms of 3/15 net 30 EOM. The cost of giving up the cash discount, assuming payment would be made on the last day of the credit period, would be

• A) 75.26%.
• B) 18.56%.
• C) 72.99%.
• D) 37.12%.

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Definitions:

Default Judgement

Default Judgement is a binding judgment in favor of either party based on some failure to take action by the other party, most often the failure to respond to a court summons.

Motion

A formal request made to a court for an order or ruling in favor of the applicant.

Notice of Motion

A formal document filed with a court to inform parties about a motion, outlining the nature of the motion and when it will be presented.

Scheduling Order

A court mandate that sets the timeline for various stages of a lawsuit, including deadlines for filings, discoveries, and trial dates.