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

question 111

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.
• E)No customers have paid within 32 days of purchase.

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Definitions:

Acupuncturists

Health care professionals trained in the practice of acupuncture, an alternative medicine technique involving the insertion of needles into the body.

Chi

In traditional Chinese culture, the vital life force that flows through and is essential to health and vitality.

Traditional Chinese Medical Philosophy

A holistic approach to healthcare rooted in ancient Chinese beliefs, emphasizing the balance of qi (vital energy) through acupuncture, herbal medicine, and dietary practices.