To Obtain the Maximum Possible Benefit from a Cash Discount

question 24

Multiple Choice

To obtain the maximum possible benefit from a cash discount of 2/10, n/30, the buyer should pay the invoice:

• A) immediately.
• B) when the seller threatens legal action.
• C) at the end of the month to receive a 7% discount.
• D) on the last day of the discount period, i.e. in 10 days, to receive a 2% discount.

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