**Question 4**In credit terms of 3/15, n/45, the "3" represents the O a. full amount of the invoice O b. number of days when the entire amount is due O c. number of days in the discount period O d. percent of the cash discount **Explanation:**This question is about interpreting typical credit terms found on an invoice. These terms indicate the conditions for early payment discounts and the final due date. Here, "3" is part of these terms, and the question is asking for its specific meaning among the listed options.- Option a suggests it indicates the full amount of the invoice, which is incorrect.- Option b suggests it is the number of days when the entire amount is due, which doesn't align with the standard interpretation.- Option c suggests it is the number of days in the discount period.- Option d suggests it represents the percent of the cash discount.For educational purposes, understanding these terms helps in managing cash flow and taking advantage of early payment discounts.

The terms that represents the due date for payment when sales are made on credit are credit terms.…

In credit terms of 3/15, n/45, the "3" represents the O a. full amount of the invoice b. number of days when the entire amount is due c. number of days in the discount period d. percent of the cash discount

In credit terms of 3/15, n/45, the "3" represents the O a. full amount of the invoice b. number of days when the entire amount is due c. number of days in the discount period d. percent of the cash discount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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