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Question: 1 / 400

How long is the payment period under NET 10 terms?

10 days after the invoice date

Under NET 10 terms, the payment period is set at 10 days following the invoice date. This means that the buyer is required to make the payment within a strict timeframe of 10 days, promoting prompt payments and streamlining cash flow for the seller. This structure helps businesses manage their receivables effectively and encourages a positive relationship with their customers by clearly defining the expectations for payment timelines.

The other options suggest longer or shorter payment periods, which do not align with the specified NET 10 terms and imply different arrangements that might be used in other contexts.

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30 days after the invoice date

7 days after the invoice date

14 days after the invoice date

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