. The credit terms are 2/10 net 30. Which of the terms is the credit period?

1. 2
2. 10
3. 30
4. 20

5. Increasing the credit discount from 3% to 4% would:

1. Increase the interest savings associated with the discount
2. Decrease the interest savings associated with the discount
3. Have no impact on the interest savings

6. The interest rate savings associated with the discount is 12% and the short-term borrowing rate is 5%. The company should:

1. The company should not take the discount
2. The company should take the discount
3. There is insufficient information to make a decision