Final answer:
The statement is true, as the 2/10, N30 terms mean a 2% discount applies if payment is made within 10 days; full payment is due in 30 days without the discount, comparable to a short-term loan like a credit card.
Step-by-step explanation:
True, if the buyer pays the amount owed within 10 days they will receive a 2% discount, as indicated by the terms 2/10, N30. These terms mean that the buyer can take a 2% discount off the total purchase amount if the payment is made within the first 10 days after the invoice date. Otherwise, the full invoice amount is due within 30 days, with no discount applied. This is in line with common trade credit terms where a purchaser is given an incentive to pay early. It's important to note that 'FOB Shipping Point' means that the buyer also takes responsibility for the goods as soon as they are shipped, including shipping costs and risk of loss.
Comparing this to credit card transactions, when you use a credit card, the money is immediately transferred from the credit card company's checking account to the seller. At a later point, the credit card user owes the purchase amount to the credit card company; thus, a credit card effectively operates as a short-term loan for the user.