A Firm Buys on Terms of 3/10, Net 30

question 105

Multiple Choice

A firm buys on terms of 3/10, net 30. What is the cost of trade credit under these terms?

• A) 55.7%
• B) 47.4%
• C) 31.5%
• D) 23.2%

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Definitions:

Policies

Principles or rules created to guide decisions and achieve rational outcomes.

Future Plans

Intentions or strategies devised for achieving specific future goals.

Marketing Research

Identifying a target market and finding out if a product or service matches customer desires.

Deductive Enterprise

The systematic process of applying deductive reasoning to reach conclusions based on premises.