What do the credit terms, 2/15, n/30 mean?

A. A fifteen percent discount can be deducted if the invoice is paid within two days following the date of sale.
B. A two percent discount can be deducted for a period up to thirty days following the date of sale.
C. A two percent discount can be deducted if the invoice is paid after the fifteenth day following the sale, but before the thirtieth day.
D. A two percent discount can be deducted if the invoice is paid before the fifteenth day following the date of the sale.


Answer: D

Business

You might also like to view...

Walton reported sales of $640,000, fixed costs of $314,000, and a profit of $92,000. If the contribution margin is $8 per unit, how many units did Walton sell?

A) 11,500 units B) 31,125 units C) 50,750 units D) 70,375 units

Business

Harry's razors are a high quality product at a value price. The current product manager wants to use a generic brown box to save money. How might this affect customers?

A. customers will be unaffected B. the brown box will signal high quality to customers. C. customers will likely perceive the product to be of poor quality. D. the customers will develop a positive brand image E. customers will not recognize the product.

Business

If a plant asset is sold for more than its book value, a loss is recorded

Indicate whether the statement is true or false

Business

The capital asset pricing model describes the relationship between the required return, or the cost of common stock equity capital, and the nonsystematic risk of a firm as measured by the beta coefficient

Indicate whether the statement is true or false

Business