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CSS Audit Tax Finance P-II QUESTION #1231
Question 1
The trade terms '2/15, net 30' indicate that:
  • A 2% discount is offered if payment is made within 15 days.✔️
  • A 15% discount is offered if payment is made within 30 days.
  • A 2% discount is offered if payment is made within 30 days.
  • A 30% discount is offered if payment is made within 15 days.
Correct Answer Explanation
The trade credit term '2/15, net 30' is read as: a 2% cash discount is available if the invoice is paid within 15 days; otherwise, the full (net) amount is due within 30 days. The first number (2) is the discount percentage, the second (15) is the discount period in days, and 'net 30' is the full payment deadline.