As a company accounts payable manager,which of the following credit terms are most likely to entice you to take the cash discount?
A) 1/10 net 45
B) 2/10 net 60
C) 1/10 net 30
D) 2/10 net 90

Question

Quizplus · Accepted Answer

A credit term of 1/10 net 30 offers a 1% discount if paid within 10 days and the full amount is due in 30 days. This offer provides a greater incentive to pay early than the other options, as the discount is higher and the payment window is shorter.

As a Company Accounts Payable Manager,which of the Following Credit