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

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

In the context of credit terms expressed as 100/300/50, the '100' refers to:

The number of days in the discount period

The total invoice amount

The cash discount percentage offered to the buyer

The number of days until the full payment is due

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Verified step by step guidance

Understand the format of credit terms: Credit terms are typically expressed in a format such as 'X/Y/Z', where X, Y, and Z represent specific details about payment conditions.

Interpret the first number (100): In this case, the '100' refers to the cash discount percentage offered to the buyer. This indicates the percentage of discount available if payment is made within the specified discount period.

Interpret the second number (300): The '300' refers to the number of days in the discount period. This is the time frame within which the buyer can take advantage of the discount.

Interpret the third number (50): The '50' refers to the number of days until the full payment is due. This is the maximum time allowed for payment without incurring penalties.

Review the options provided: Based on the interpretation of the credit terms, identify which option correctly matches the meaning of '100' in the context of the problem.