Which of the following terms would tend to minimize a firm's investment in accounts receivable?
A) net 15
B) net 30
C) 1/15 net 45
D) 2/10 net 30

Question

Quizplus · Accepted Answer

2/10 net 30 means that the customer can take a 2% discount if they pay within 10 days, otherwise, the full payment is due in 30 days. This encourages customers to pay quickly, therefore minimizing the firm's investment in accounts receivable.

Which of the Following Terms Would Tend to Minimize a Firm's