A Firm Offers Its Customers 1/10 Net 40

question 55

Multiple Choice

A firm offers its customers 1/10 net 40.What is the cost of trade credit to a customer who chooses to pay on day 40?

• A)12.8%
• B)13.0%
• C)65.5%
• D)96.0%
• E)83.1%

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Definitions:

Oral Contract

A legal agreement which is made through spoken communication and is as binding as a written contract, although more difficult to prove.

Custom Motorcycle

A motorcycle that has been modified or built to suit specific preferences, often involving alterations to appearance, performance, or comfort.

Big Choppers

Slang for large motorcycles, particularly those with extended front ends or customized in a style that emphasizes size and power.

Delivery

The act of transferring an item from one party to another, typically referring to goods transported by a mail service or courier.