If a Supplier Is Offering Trade Credit of 1/10 Net

question 34

Multiple Choice

If a supplier is offering trade credit of 1/10 net 30, and a buyer chooses not to take the discount, when should they pay, assuming that they wish to stay on good terms with the supplier?

• A) any time before day 10
• B) on day 10
• C) on day 30
• D) any time after day 30

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Definitions:

Cost Groupings

The classification of costs into categories, often for accounting, reporting, or analysis purposes.

Cost-Effectiveness

A measure evaluating the relative expense of an intervention or action in generating a desired outcome or benefit, typically considering the most efficient use of resources.

Credibility

The quality of being trusted and believed in.

Benefits Estimation

The process of determining the potential advantages or outcomes of a project or decision.