In Credit Terms of 3/15, N/45, the "3" Represents the

question 148

Multiple Choice

In credit terms of 3/15, n/45, the "3" represents the

• A) number of days in the discount period
• B) full amount of the invoice
• C) number of days when the entire amount is due
• D) percent of the cash discount

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Definitions:

Cash Flows

The cumulative sum of funds moving into and away from a company, influencing its ability to cover short-term obligations.

Payback Period

Payback period is the duration it takes for an investment to recover its initial outlay, measured from the point of investment.

Cash Inflows

All types of cash received by a business, from operations, financing activities, and investments, contributing to its cash pool.

Salvage Value

The calculated leftover value of an asset at the termination of its useful period.