Question
32. Which of the following statements concerning dating is false? a. A type of dating which is not particularly favorable to retailers because payment may
32. Which of the following statements concerning dating is false? a. A type of dating which is not particularly favorable to retailers because payment may be due before the merchandise arrives if the vendor is slow in shipping the merchandise is DOI (date of invoice). b. If certain vendors are located a greater distance from their customers than are their competitors, they may offer ROG (receipt of goods) dating rather than be at a competitive disadvantage by using ordinary dating. c. Terms of 2/40, n/80 are equivalent to an annual interest rate of 24 percent. d. The components of a cash discount are a percentage discount, a period in which the discount may be taken, and the net credit period. e. If an invoice is dated February 10 and carries the terms 2/10, n/30 EOM, the 10-day discount period begins March 1.
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