A company sells goods and offers credit terms of "net 30 days." What does this reveal to the company that sold the goods?

Question

Quizplus · Accepted Answer

"Net 30 days" means that the customer has up to 30 days to pay back the seller for the goods purchased without penalty. Option A is incorrect because it does not relate to the credit term "net 30 days". Option B is incorrect because the credit sale is recognized when the goods are sold, not when the payment is received. Option C is also incorrect because it mentions a discount for customers using credit cards, which is not related to the credit term offered.

A Company Sells Goods and Offers Credit Terms of "Net