Cash Discount Terms of 2/10, Net 30 on an Invoice

question 168

Multiple Choice

Cash discount terms of 2/10, net 30 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 30 days.

• A) 10
• B) 30
• C) 18
• D) 12
• E) 36

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Definitions:

Taxpayers

Individuals or entities legally obligated to pay taxes to governmental authorities.

Unorganized Interest Effect

Impact or influence arising from a group or sector that lacks formal representation or structure in lobbying or policy-making processes.

Electrical Appliances

Devices operated by electricity that are used for household functions such as cooking, cleaning, or personal care.

New Regulations

Recently implemented rules or laws designed to control or govern conduct, usually within a specific activity or industry.