Which one of the following statements is correct?
A) The credit period begins when the discount period ends.
B) The discount period is the length of time granted to a customer to pay for a purchase.
C) The credit period begins on the invoice date.
D) With terms of 2/10, net 30, the net credit period is 20 days.
E) With EOM dating, all sales are assumed to have occurred on the 15ᵗʰ of each month.

Question

Quizplus · Accepted Answer

The credit period, which is the time frame a buyer has to pay the invoice, indeed starts on the invoice date. This period includes any discount period and extends until the full payment is due.

Which One of the Following Statements Is Correct