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Cash Discount Terms of 2/10, Net 60 on an Invoice

question 139

Multiple Choice

Cash discount terms of 2/10, net 60 on an invoice would-in effect-amount to borrowing at an annual interest rate of about ________ percent if the buyer did not pay the invoice for 60 days.


Definitions:

Semantic Priming

A phenomenon in which exposure to one word (e.g., nurse) facilitates the recognition of semantically related words (e.g., doctor).

Concept Usage

The ways in which ideas or abstractions are employed in different contexts to convey meanings or understand phenomena.

Script

A schema for routine events. See also schema and story grammar.

Classical View

A traditional perspective or theory within a field that has been widely accepted over time.

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