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Which of the Following Statements Is Correct

Question 2

Multiple Choice

Which of the following statements is correct?


A) The purchase requisition is the form sent to a supplier to order goods.
B) The credit terms, 2/10, n/30, allow the customer to take a 2 percent discount if payment is made within 10 days of the invoice, otherwise payment is due in full in 30 days.
C) To the customer, a supplier's invoice is a purchase order invoice.
D) The Purchases account is reported as an asset on the balance sheet.

Correct Answer:

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