CAF-7 · Chapter 12 · Question 13 of 15
A supplier offers terms of '2/10, net 30'. What does this mean for the purchasing company?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The company can take a 2% cash discount if it pays within 10 days; otherwise, the full net amount is due within 30 days
Explanation
This is standard credit term terminology. '2/10, net 30' means the buyer can deduct 2% from the invoice amount if payment is made within 10 days. If the discount is not taken, the full (net) invoice amount is due within 30 days.
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