4/10 N/30 Accounting is an official business definition used in accounting to describe a form of payment terms. This term is used when a business extends credit to customers and specifies the terms of payment. Specifically, 4/10 N/30 indicates that the customer is eligible to receive a 4% discount if they pay within 10 days. If the payment is not received within 10 days, the customer must pay the full invoice amount within 30 days. This type of payment term reflects the trade-off between providing a customer with early payment incentives and the need to receive payment in a timely manner. In other words, the 4% discount provides an incentive for customers to pay quickly, while the 30 day payment term gives the business the assurance that they will receive payment within a reasonable amount of time. 4/10 N/30 Accounting is an important part of managing cash flow and ensuring that a business can meet its financial obligations.