The terms '2/7' appearing on an invoice for the sale/purchase of inventories means that the buyer:
A) will receive a 2% discount if paid within 7 days of the invoice date.
B) will receive a 7% discount if paid within 2 days of the invoice date.
C) has 7 days from the invoice date to pay or will be charged a 2% surcharge.
D) has 2 days from the invoice date to pay or will be charged a 7% surcharge.

Question

Quizplus · Accepted Answer

The terms '2/7' on an invoice refer to a cash discount that the buyer can avail of if they pay within a certain timeframe. In this case, the buyer will receive a 2% discount if they pay within 7 days of the invoice date.

The Terms '2/7' Appearing on an Invoice for the Sale/purchase