CPFO practice question 5 of 30
Assume an invoice with credit terms of 2%/10, net30. The interest charge is 2% of $1000, or $20; the principal is $980; and the days of principal…
Choose your answer, then check it against the explanation.
Assume an invoice with credit terms of 2%/10, net30. The interest charge is 2% of $1000, or $20; the
principal is $980; and the days of principal borrowed are the 20 days of credit. What is the interest
rate offered if the discount is taken?
Question 5 of 30
Keep practicing
Take the free CPFO practice test
Ten exam-style questions with answers and explanations, plus the exam facts and study guides.
More questions
Other CPFO practice questions
- Question 2A Stabile economy is defined as? I. An equilibrium in the international balance of paymen…
- Question 3GAAP do not specify how much fund balance to set aside, but the_________ recommends that …
- Question 4Pension trust, investment trust, private-purpose trust, and agency are the types of:
- Question 6Revenue bonds are a liability limited to the pledged revenue. The issuer is thus not obli…
- Question 7GAAP requires that the fees for enterprise fund services like water, sewer, and electrici…
- Question 9The CAFR includes all of the following EXCEPT the: