he term 2/10-n/30 implies that ______ % discount will be given if the payment is made within days or full amount is receivable within 30 days?
Correct answer: A. 2,10
- A. 2,10
- B. 10,2
- C. 10,30
- D. 3,15
Explanation
The notation 2/10-n/30 means a 2% discount is allowed when payment is made within 10 days; otherwise the full amount is due within 30 days. The first figure is the discount percentage and the second is the discount period.
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Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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