A firm offers its customers 2/14 net 28. What is the cost of trade credit to a customer who chooses to pay on day 28?

A) 32.8%
B) 67.3%
C) 69.3%
D) 72.4%


Answer: C

Business

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Long-term investments in held-to-maturity debt securities are accounted for using the:

A. Cost method without amortization. B. Fair value method with fair value adjustment to income. C. Fair value method with fair value adjustment to equity. D. Equity method. E. Cost method with amortization.

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Shareholder measures of performance are directly influenced by product-market performance and profitability

Indicate whether the statement is true or false

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Pricing is not designed to cover total costs but to maximize total contribution-that is, unit price minus unit variable costs.

Answer the following statement true (T) or false (F)

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The departmental overhead rate method traces costs to each department and then determines an allocation base for each department.

Answer the following statement true (T) or false (F)

Business