alleryStart learning →Under the common term Net 30, payment is due in full within:
AThirty months
BThirty days
CThirty hours
DThirty weeks
Answer & Solution
Correct answer: B. Thirty days
1. Net terms state how long the buyer may wait before paying.
2. The number in the term is a count of days.
3. A common net term is Net 30, with payment due in full within 30 days.
4. The clock runs from the invoice date.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 19 'The Importance of Trade Credit and Working Capital in Planning', sections 19.1-19.5_
Keep practising Working Capital Management
Browse all Working Capital Management questions for US CMA Part 2, or explore more Finance topics.
Related questions
Working capital bingoFlip and match the termsPick it fastLiquid or notBuild the net working capitalWhich production technique is named as affecting the inventory conversion cycle?Supplies and prepaid expenses are described as never becoming which of these?Why can an excessively high net working capital be a problem?