Asked by
Jalen Watson
on Nov 15, 2024
Verified
The arrangements between buyer and seller as to when payments for merchandise are to be made are called:
A) credit terms.
B) net allowance.
C) cash on demand.
D) discount period.
Credit Terms
The conditions under which credit will be extended to a customer, including the repayment time frame and any interest or discounts.
Net Allowance
The remaining balance after adjustments are made for discounts, returns, or bad debts to the gross receivables or revenue.
- Understand the consequences and utilization of credit terms in sales agreements.
Verified Answer
VM
Learning Objectives
- Understand the consequences and utilization of credit terms in sales agreements.