Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

If credit terms of n/15 are printed on an invoice, what does this indicate?

No payment is required for 15 days after the invoice date.

Payment is due in 15 monthly installments.

A 15% discount is available if paid immediately.

The net (full) amount of the invoice is due within 15 days.

Previous problemNext problem

Verified step by step guidance

Understand the concept of credit terms: Credit terms specify the payment conditions agreed upon between the buyer and seller. They indicate when payment is due and whether any discounts are available for early payment.

Analyze the notation 'n/15': The 'n' stands for 'net,' which means the full amount of the invoice. The '/15' indicates that the payment is due within 15 days from the invoice date.

Clarify the meaning of 'net amount': The net amount refers to the total amount owed without any discounts or deductions.

Interpret the absence of a discount: Since the credit terms only mention 'n/15' and do not include any discount terms (e.g., '2/10, n/30'), it means there is no discount for early payment.

Conclude the explanation: The credit terms 'n/15' indicate that the full amount of the invoice is due within 15 days of the invoice date, and no payment is required before this period unless the buyer chooses to pay earlier.