CFA Practice Question

There are 120 practice questions for this study session.

CFA Practice Question

If Dakota Medical Suppliers receive an invoice for purchases dated 12/12/2007 subject to credit terms of "2/10, net 30," what is the last possible day the discount can be taken?

A. January 11
B. December 22
C. December 30
Correct Answer: B

The term "2/10" refers to a firm that can take the discount for only 10 days from the date of the invoice. Thus, goods shipped on the 12th are due no later than the 22nd if the discount is taken.

User Contributed Comments 0

You need to log in first to add your comment.