A Firm Has Just Received an Invoice for $1,000 with the Following

question 154

Multiple Choice

A firm has just received an invoice for $1,000 with the following terms: 3/10, net 30. In this case, the firm:

• A) should not worry about earning the cash discount because the amount is small.
• B) can take a 10 percent discount if it pays within 3 days, and otherwise the full amount is due in 30 days.
• C) can take a 3 percent discount if it pays the invoice on the 30^th day.
• D) in effect, will be borrowing at an annual rate of 54 percent if it pays the invoice in 30 days.
• E) should pay $900 if it pays within 10 days.

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Definitions:

Mirror Image Reversal

The phenomenon where an image or object is reversed from left to right, as seen in a mirror reflection.

Picture Plane

Refers to the surface on which a two-dimensional art piece is created, acting as the imaginary boundary between the viewer and the depicted scene.

Mnemonic Devices

Tools or techniques that aid in the memorization or retrieval of information, often by making connections between new information and information already stored in memory.

Method Of Loci

A memorization method that requires the learner to visualize an ordered series of physical locations as mnemonic cues for a list of information.