A Business Offers Credit Terms of 1/15, N/30

question 187

Multiple Choice

A business offers credit terms of 1/15, n/30. These terms indicate that:

• A) the total amount of the invoice must be paid within 15 days.
• B) a discount of 1% can be taken if the invoice is paid within 15 days.
• C) the buyer can take a 1% discount if the bill is paid within 15 or 30 days.
• D) no discount is offered for early payment.

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Definitions:

Reckless Disregard

A legal term referring to a person's intentional negligence or failure to pay proper attention to a duty or law, often resulting in harm or damage.

Double Jeopardy

A legal principle that prevents an individual from being tried twice for the same offense.

Same Crime

The principle that individuals committing the same offense should receive equal treatment and punishment under law.

Tried Twice

Being subjected to prosecution for the same offense in the same jurisdiction more than once, prohibited under the "double jeopardy" clause of the Fifth Amendment to the U.S. Constitution.