A Cash Discount of 3/15, Net 30 Means That

question 280

Multiple Choice

A cash discount of 3/15, net 30 means that:

• A) The buyer gets a 15 percent discount off the face value of the invoice if the invoice is paid within 3 days.
• B) The buyer gets a 3 percent discount off the face value of the invoice if the invoice is paid within 15 days.
• C) The buyer makes a 3 percent down payment on the face value of the invoice within 15 days; the remainder is due in 30 days.
• D) The buyer gets a 3/15 (20 percent) discount if the invoice is paid within 30 days.
• E) None of these alternatives is correct.

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Definitions:

Socioeconomic Status

A measure of an individual's or family's economic and social position in relation to others, based on income, education, and occupation.

Speech

The expression of thoughts and feelings through spoken language.

Social Class

A division of a society based on social and economic status, which influences individuals’ opportunities, lifestyles, attitudes, and behavior.

Paul Fussell

An American cultural and literary historian known for his writings on class, war, and social issues in America.