Quick business question

Does payment terms of 2/10 net 30 mean that if you pay the supplier within 10 days, then you’ll receive a 2% discount, but you MUST pay within 30 days to avoid finance charges?

Also, what exactly is an “open account” are there thus “closed accounts”? I mean open account interms of the account relation between buyer and seller.

Bingo, MUST is a strong word, but yea, that’s what it means.

If you have an open account with a business, it means they let you charge things and pay later. As opposed to cash and carry or COD. A closed account would just mean (for any number of reasons) you don’t have an account with them anymore.