CFA Practice Question
What does the term "1/10, net 45" mean?
A. A 1% discount is permitted if payment is made within 10 days.
B. A 10% discount is permitted if payment is made within 45 days.
C. A 1% discount is permitted if payment is made within 45 days.
Explanation: The format of trade terms indicates the discount available (1%), the number of days that the discount can be taken (10), and that the full payment (without any discount) is due no later than 45 days.
User Contributed Comments 2
| User | Comment |
|---|---|
| dipu617 | It's a basic question. Don't understand why it's difficulty level is "difficult"??!!!! |
| endurance | don't bother - only one thing matters...... |