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:

National Saving

The total amount of savings generated within a country, calculated as the sum of private savings (by individuals and businesses) and public savings (government surplus), which is critical for funding investment.

Disposable Income

The amount of money a household has available for spending and saving after income taxes have been accounted for.

Private Saving

The portion of an individual's or entity's income that is not spent on consumption or paid in taxes and is instead saved.

National Saving

The total amount saved within a country in a given time period, typically considered as the sum of private and public savings.