The Terms of an Invoice Are 3/10,n/25

question 276

Multiple Choice

The terms of an invoice are 3/10,n/25.This means that a ________ of the invoice date.

• A) discount of 10 percent is allowed if the invoice is paid within three days after the invoice date
• B) discount of 3 percent is allowed if the invoice is paid within 10 days after the invoice date
• C) discount of 25 percent is allowed if the invoice is paid within 10 days after the invoice date
• D) discount of 3 percent is allowed if the invoice is paid after 25 days after the invoice date

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Definitions:

Market Equilibrium

A situation in a market where the quantity of a product demanded by consumers equals the quantity supplied by producers, leading to a stable price.

Competitive Industry

An industry characterized by a large number of firms competing with each other to provide goods or services to consumers.

Market Demand

The total quantity of a product or service that consumers are willing and able to purchase at various prices during a specified time period.

Market Equilibrium

A state in a market where the quantity demanded by consumers equals the quantity supplied by producers, leading to a stable price.