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What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? OA. Interest of 2 percent will be charged if the invoice is paid after 10 days from the date on the invoice. OB. A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. OC. A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date. OD. Interest of 10 percent will be charged if invoice is paid after two days.

What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? OA. Interest of 2 percent will be charged if the invoice is paid after 10 days from the date on the invoice. OB. A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. OC. A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date. OD. Interest of 10 percent will be charged if invoice is paid after two days.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 17P
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What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? OA. Interest of 2 percent will be charged if the invoice is paid after 10 days from the date on the invoice. OB. A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. OC. A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date. OD. Interest of 10 percent will be charged if invoice is paid after two days.
Transcribed Image Text:What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? OA. Interest of 2 percent will be charged if the invoice is paid after 10 days from the date on the invoice. OB. A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. OC. A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date. OD. Interest of 10 percent will be charged if invoice is paid after two days.
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