Which of the following is true about terms 2/10,n/30?
A)A 2% discount is given if the invoice is paid in 10 days;the full amount is due in 30 days.
B)A 10% discount is given if the invoice is paid in 2 days;the full amount is due in 30 days.
C)The discount period is 30 days.
D)The credit period is 10 days.

Question

Quizplus · Accepted Answer

The terms 2/10,n/30 indicate that a 2% discount is given if the invoice is paid within 10 days, and the full amount is due within 30 days. Therefore, option A is the correct answer. Option B is incorrect because it states a 10% discount, which is not mentioned in the original terms. Option C is incorrect because it confuses the discount period with the credit period. Option D is incorrect because it refers to the credit period instead of the discount period.

Which of the Following Is True About Terms 2/10,n/30