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:

Contributed Services

Services provided by volunteers or donated resources that are typically not paid for but are recorded in the financial statements if they create or enhance a nonfinancial asset or require specialized skills.

Permanent Endowment

A donation of money or property to a nonprofit organization, which uses the resulting investment income for a specific purpose.