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A Cash Discount of 2/5,net 30

Question 40

Multiple Choice

A cash discount of 2/5,net 30:


A) grants customers 30 days to pay after the discount period expires.
B) offers customers a maximum of 30 days credit.
C) grants free credit for a period of 30 days.
D) charges a higher price to a cash customer than to a customer who pays in 2 days.
E) grants customers 2 days to pay if they want the 5 percent discount.

Correct Answer:

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