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10. On September 1, a firm grants credit with terms of 2/10 net 45. The creditor: A. must pay a penalty of 2% when payment is made later than September 1st.B. must pay a penalty of 10% when payment is made later than 2 days after September 1st.C. receives a discount of 2% when payment is made at least 10 days before September 1st.D. receives a discount of 2% when payment is made before September 1stand pays a penalty of 10% if payment is made after September 1st.E. receives a discount of 2% when payment is made within 10 days after the effective invoice date of September 1st.11. The credit period offered is influenced by: 12. Seasonal dating of accounts receivable: 13. Which of the following is not true concerning considerations in setting a credit policy? 28-3
Chapter 28 - Credit and Inventory Management14. Lengthening the credit period _____ the price paid by the customer. Generally, this acts to _____ sales. A. increases; increaseB. increases; decreaseC. decreases; decreaseD. decreases; increaseE. increases; have no effect on15. When analyzing the NPV of a decision to change cash discounts, the firm would probably not consider: 16. When analyzing the decision to change the cash discount policy, the firm should: