The Terms '2/7' Appearing on an Invoice for the Sale/purchase

question 9

Multiple Choice

The terms '2/7' appearing on an invoice for the sale/purchase of inventories means that the buyer:

• A) will receive a 2% discount if paid within 7 days of the invoice date.
• B) will receive a 7% discount if paid within 2 days of the invoice date.
• C) has 7 days from the invoice date to pay or will be charged a 2% surcharge.
• D) has 2 days from the invoice date to pay or will be charged a 7% surcharge.

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Definitions:

Compensation

A mental operation in which a child realizes that changes in one aspect of a problem are compared with and compensated for by changes in another aspect.

Conservation of Number

A cognitive ability, identified by Piaget, that allows a child to understand that the quantity of an item remains the same despite changes in its shape or arrangement.

Failure to Conserve

A difficulty or inability to recognize that certain properties of objects or substances remain unchanged despite changes in their form or arrangement, typically seen in children before they reach the concrete operational stage of cognitive development.

Mental Operation

Cognitive processes that allow an individual to reason, perform abstract thinking, and solve problems.