29) The credit term 2/10, n/30 means: A) That after 10 days 2% interest is charged. B) That there is a 10% discount if payment is received within 30 days. C) That there is a 2% discount if payment is received within 10 days, otherwise, full payment is due within 30 days D) There is a 10% discount if paid immediately and 2% ir paid within 30 day. 30) The cost of delivering merchandise to the customer is A) Part of cost of goods sold. B) Used in the calculation of net sales. C) An operating expense. D) A reduction of gross profit 31) To arrive at net sales: A) Add sales discounts to sales. B) Subtract the cost of goods sold from the sales price C) Subtract sales returns and sales discounts from sales. D) Subtract accounts receivable from sales. 32) The Sales Returns and Allowances account is debited when: A) Merchandise is returned to a supplier B) Merchandise is retumed by a custommer C) Payment is made to a supplier within the discount period. D) An account receivable is collected within the discount period. 33) 1fcost of goods sold is S360.000 and the gross profit rate is 40%, what is the gross profit? A) $240,000 B) $360,000 C) $600,000 D) $900,000 34) With a line of credit, a liability arises: A)As soon as the line is created. B) As soon as any money is borrowed. C) Upon repayment of the debt. D) At the maturity date. 35) Which of the following is not an example of internal control over cash? A) Preparation of a cash budget B) Daily deposits of cash receipts at the bank C) Combining the functions of signing checks with the approval of expenditures D) Preparation of bank reconciliation