What Does "2/10" Mean, with Respect to "Credit Terms of 2/10

question 158

Multiple Choice

What does "2/10" mean, with respect to "credit terms of 2/10, n/30"?

• A)A discount of 2% will be allowed if invoice is paid within 10 days from the date of the invoice .
• B)An interest of 2% will be charged if invoice is paid after 10 days from the date of invoice.
• C)A discount of 10% will be allowed if invoice is paid within 2 days from the date of invoice.
• D)An interest of 10% will be charged if invoice is paid after 2 days.

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Definitions:

New York

A state in the northeastern U.S., known for New York City, a major cultural, financial, and commercial center, as well as other notable regions like the Adirondacks and the Finger Lakes.

1930s

A decade during which the world experienced the Great Depression, characterized by significant economic hardship, high unemployment, and major shifts in economic policies.

Quantity Controls

Government-imposed limits on the amount of a good that can be produced or sold within a market.

Price Ceilings

A legally established maximum price for goods or services, aimed at preventing prices from rising too high.