Which statement is true about terms of trade credit of 2/10, net 30 ?

CS Executive · Financial and Strategic Management · PYQS · June 2023
Which statement is true about terms of trade credit of 2/10, net 30 ?
(A) A 10% cash discount is offered for payment before 30 days
(B) A 2% cash discount can be taken for payment before the 10th of the following month
(C) A 10% cash discount can be taken if paid by the second day after invoicing
(D) No cash discount is offered from the eleventh day of sales

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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