Which one of the following statements is correct concerning the credit period?

Question

Quizplus · Accepted Answer

The credit period begins on the invoice date, which is the date the customer receives the bill. This is when the clock starts ticking for when the payment is due. The discount period is the time frame in which the customer can take advantage of any discounts offered for paying their bill early. The credit period is the maximum amount of time granted to the customer to pay their bill without penalty. A 2/10, net 20 term means that the customer can take a 2% discount if they pay within 10 days, but if they don't, the full amount is due in 20 days. EOM dating means end-of-month dating, where all sales from the month are assumed to have occurred on the last day of the month.

Which One of the Following Statements Is Correct Concerning the Credit