Brown's Hardware offers a discount of two percent on their commercial accounts if payment is received within ten days. Otherwise, payment is due within 30 days. This credit offering is referred to as the:
A) terms of sale.
B) credit analysis.
C) collection policy.
D) payables policy.
E) collection float.

Question

Quizplus · Accepted Answer

The credit offering described in the question is known as the "terms of sale." It outlines the conditions under which customers can purchase on credit from Brown's Hardware, including the discount for prompt payment and the due date for regular payment. The other options (credit analysis, collection policy, payables policy, and collection float) refer to different aspects of credit management but do not specifically relate to the terms of sale.

Brown's Hardware Offers a Discount of Two Percent on Their