New Enroll in our GIC Finance Online Course Here!

    Register

    Question

    The term 'net 50' implies that the customer will make

    payment:
    A Exactly on 50th day Correct Answer Incorrect Answer
    B Before 50th day Correct Answer Incorrect Answer
    C Not later than 50th day Correct Answer Incorrect Answer
    D After 50th day Correct Answer Incorrect Answer
    E None of the above. Correct Answer Incorrect Answer

    Solution

    Net 50 generally implies that payment is due within 50 days from the date of invoice. It is a payment term often used in commercial transactions, indicating the number of days a buyer has to pay the seller for the goods or services purchased. "Net" means that payment is due in full, and "50" indicates the number of days allowed for payment.

    Practice Next

    Relevant for Exams: