Which one of the following statements is correct? A)The credit period begins when the discount period ends. B)The discount period is the length of time granted to a customer to pay for a purchase. C)The credit period begins on the invoice date. D)With terms of 2/10, net 30, the net credit period is 20 days. E)With EOM dating, all sales are assumed to have occurred on the 15^th of each month.

Question

Quizplus · Accepted Answer

The credit period, which is the time allowed for customers to pay their invoices, indeed starts on the invoice date. This period is crucial for managing cash flows in businesses.

Which One of the Following Statements Is Correct