What Is the Meaning of the Term 2/10 Net 30

question 10

Multiple Choice

What is the meaning of the term 2/10 net 30?

• A) If the invoice is paid within 10 days, a 2% discount can be taken. If the invoice is paid between 11 and 29 days, a 1% discount can be taken. After 30 days, the full invoice is due.
• B) If the invoice is paid within 2 days, a 10% discount can be taken; otherwise the full invoice is due in 30 days.
• C) If the invoice is paid within 2 days, a 10% discount can be taken; otherwise a 2% discount can be taken if the invoice is paid in 30 days.
• D) If the invoice is paid within 10 days, a 2% discount can be taken; otherwise the full invoice is due in 30 days.

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Definitions:

Dodd-Frank Act

A comprehensive piece of financial regulation legislation passed in 2010 in response to the 2008 financial crisis, aimed at reducing risks in the U.S. financial system.