A Prompt Payment Term Such as "2/10:n/30" Means Which of the Following

question 22

Multiple Choice

A prompt payment term such as "2/10:n/30" means which of the following?

• A) The gross amount is due in ten days.
• B) The customer can earn a 2% cash discount by paying within 10 days of the invoice date.
• C) The customer can earn a 10% cash discount by paying within 2 days of the invoice date.
• D) The customer can earn a 10% cash discount by paying within 30 days.

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Definitions:

Plutoid

A class of dwarf planet farther from the Sun than the orbit of Neptune.

Orbited

Describes the path one object takes around another object due to the gravitational forces between them, commonly used in the context of planets and satellites.

Solar Wind

Solar Wind is a stream of charged particles, including electrons and protons, ejected from the upper atmosphere of the sun, affecting the entire solar system.

Comet

An icy, small Solar System body that, when passing close to the Sun, warms and begins to release gases, a process called outgassing, creating a visible atmosphere or coma, and sometimes a tail.