How would the terms be stated if a business was offering a cash discount of 5 percent if consumers pay the invoice within 30 days with the full face amount of the invoice due 30 days after that?
A) 5/30, net 60
B) 5/60, net 90
C) 5/15, net 45
D) 10/30, net 60

Question

Quizplus · Accepted Answer

The terms indicate a cash discount of 5 percent if payment is made within 30 days, and the payment is due in full 30 days after that. This is represented as "5/30" (5% discount for payment within 30 days) and "net 60" (full payment due 60 days after invoice date).

How Would the Terms Be Stated If a Business Was